New Delhi, Mar 31 (UNI) Hero Honda Motors today said it will inaugurate the Rs 450 crore Haridwar plant with a capacity of 700,000 units in FY 09, on April 8.
''Later the capacity of the plant will be increased to half a million units. However, the installed capacity at the plant in the initial stages will be half a million units, said Company Managing Director Pawan Munjal.
The company plans to ramp up its production in the Haridwar plant to 1.5 million unit in three years. This will put Hero Honda's total capacity at 5.4 million units, he added.
The company's sales increased 15 per cent to 3,20,594 units in March compared to 2,77,915 units in the same month last year.
''We as a company are very happy with the numbers given the current situation where the industry decline has been over 10 per cent, Mr Munjal said.
He attributed the result to the product performance and a reduction in excise duty.
The finance minister earlier in the month had cut excise duty on two-wheelers from 16 per cent to 12 per cent.
However, Mr Munjal said the real problem of retail financing still remains.
He also expressed concern over rising input costs and as a company wants to keep all options open to tackle the situation.
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