Honda Motorcycle and Scooter India (HMSI), Honda’s wholly-owned motorcycle production and sales subsidiary in India, today announced plans to build a second motorcycle production plant to meet increasing demand in the rapidly growing motorcycle market in India.

To build the second plant, HMSI will acquire approximately 240,000 square meters of land within the Tapukara Industrial Area (Near Bhiwadi), Rajasthan, which is approximately 40km from the existing plant and approximately 90km from Delhi. The new plant is scheduled to become operational in the 2nd half of 2011 with annual production capacity of 600,000 units. Further, HMSI is expanding annual production capacity of its existing plant from the current 1.25 million units to 1.55 million units by the end of this month, with a further expansion to 1.6 million units already scheduled for next year. As a result, HMSI’s total annual production capacity will be 2.2 million units when the second plant becomes operational. The new plant will employ approximately 2,000 associates at initial stage of full capacity. The total investment will be approximately Rs. 4.7 billion (approximately 8.9 billion yen).

Utilizing production technologies refined at the existing plant as a starting point, HMSI will strive to improve process ergonomics and employ more advanced automation and other measures to its second plant. It will also be more environmentally responsible plant by proactively reducing energy consumption during production and by employing other environmental measures such as water recycling.

India represents the world’s second largest motorcycle market behind only China, and industry-wide motorcycle sales in India for 2009 reached 8.8 million units (up 19% compared to 2008). HMSI was established as a wholly-owned motorcycle production and sales subsidiary of Honda in 1999 and began production in 2001. HMSI’s sales have grown steadily with 2009 sales of approximately 1.1 million units (up 11% compared to 2008) achieving a record high for nine consecutive years.

In order to fulfill the diversifying needs of customers in the growing market of India, HMSI is enhancing its product lineup with last year’s full model change of the Activa 110cc scooter, one of the company’s best-selling products, and by introducing the CB Twister 110cc motorcycle in February 2010 in the 100-110cc market segment, which accounts for approximately 50% of total motorcycle market. The decision to build the second motorcycle production plant was made to better accommodate a further increase in demand in India.

Petrol prices are all set to go up from midnight tonight, on the back of the excise duty hike in the union budget of 2010-11.

While the price of petrol would go up by Rs. 2.67 in New Delhi (from Rs. 44.72 to Rs. 47.39), in a few other states, petrol price hike would be slightly higher.

Price of Diesel too has been hiked by Rs. 2.58 from midnight tonight in New Delhi.

Bajaj Auto has quietly launched the 2010 version of Pulsar 150 DTS-i.

Priced at Rs. 500 higher than the earlier model, the new Pulsar 150 DTS-i gets a power boost of almost 1 bhp (15.06bhp vs. 14.09 of earlier model), thanks to a new and larger intake system and 29 mm venturi carburetor, which Bajaj Auto claims, not only boosts power, but also results in a more refined engine and better throttle response.

The new 2010 Bajaj Pulsar 150 DTS-i now also comes with clip-ons and is priced at Rs. 60,020 (ex-showroom Delhi).

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