March 21, 2007: The Manesar plant of Honda Motorcycles and Scooters India is set to see a major capacity expansion with the company lining up an investment of Rs 3 billion. Honda Motorcycles and Scooters India is a unit of Japanese automaker Honda Motor Co.

The capacity expansion at the Manesar plant is to happen in the next two year period and is expected to roll out as many as 1.2 million two-wheeler units a year. This is an increase from the current 900,000 units , according to a report. The planned capacity expansion is in line with an expected increase in sales and the two-wheeler maker targets sales of one million-plus two-wheelers a year by 2010, the report added. Sales in the next three years is expected to cross one million units.

The company has targeted sales of 720,000 units this fiscal and has eyed record a 27 per cent increase in the next financial year.

Meanwhile another report added that Honda Motorcycles and Scooters India has commissioned a feasibility study for a new manufacturing plant. The proposed plant is to be established after the current plant reaches its full capacity, the report added. It is expected that the new plant will be built in the next two years . The location and the amount of money to be invested will be decided after the feasibility study is over.

The company has in the meanwhile lifted the wraps off its new variant of the 150 cc motorcycle Unicorn. The company also plans to launch a new scooter model in the next financial year. These apart, Honda Motorcycles and Scooters India is also working on a motorcycle in the entry level capacity of 100 cc, said a report.

There are also reports that Honda Motorcycles and Scooters is mulling over import of bikes in the 500 cc segment as completely built units into the country.