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Companies

Honda to ramp up 2-wheeler capacity in top market India

New line would increase output 10% to 7m units

Honda Motor sold nearly 6 million two-wheelers in India in fiscal 2017.

TOKYO -- Honda Motor will expand production capacity for two-wheeled vehicles in India to an annual 7 million units in 2020 as it seeks a bigger slice of a fast-growing market.

The Japanese company will spend 6.3 billion rupees ($85 million) to add a line at its newest plant, a scooter facility in the state of Gujarat, under plans announced on Thursday. The plant's capacity will rise 50% to 1.8 million units. The line will focus on scooters for the Indian market after beginning operation in fiscal 2020.

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