in Karnataka at an investment of Rs 800 crore. This will see the total
capacity of the company go up to nearly 6 million units.
An official with the Karnataka Government said that Honda has received
necessary approvals to set up the fourth plant at Narsapur, near
Bangalore. The third plant is also located at the same site and has a
capacity to produce 1.8 million units. The investment for the third
plant is around Rs 1,200 crore in the Government-allocated 96-acre
The first plant, with a capacity of 1.6 million units, is located in
Manesar in Haryana and the second plant — with a capacity of 1.2
million units — is located in Tapukara in Rajasthan.
The official said the ancillary units around the Honda plant will
invest a total of Rs 1,200 crore to manufacture parts for the main
unit. The Honda plant will generate jobs for around 5,000 people.
The company had earlier told Business Line that India will be its
biggest global market for two wheelers by 2015. It will account for
about 30 per cent of its overall market share, which is now at about
13 per cent.
Honda was earlier looking at setting up the fourth plant in Gujarat
but it eventually decided to set up the fourth plant in Karnataka
itself. The State Government recently offered tax concessions to Honda
for the plant, which includes 40 per cent value added tax payable by
the company to the Government as interest-free loan for up to 10
years. The cabinet has also cleared 95 per cent reimbursement of CST
for a period of five years and waiver of 100 per cent of land
registration cost as well.
HMSI officials had earlier said that the product line-up for the
Karnataka plant include, three models of automatic scooters and six
motorcycles in 100 cc to 250 cc range.
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