HMSI to pump in Rs 300cr at Manesar plant, new facility in offing

New Delhi, Mar 19 (UNI) Honda Motorcycle and Scooter India (HMSI) will invest Rs 300 crore at its Manesar plant to ramp up production capacity to 1.2 million (12 lakh) units per annum by 2009 from the present nine lakh units per year, even as it plans to set up a new plant for a 100 cc bike to be launched in the future.

HMSI, a 100 per cent subsidiary of Japan's Honda Motors, aims to clock annual sales of nine lakh units by 2007-08, a growth of 27 per cent, having sold 7.2 lakh units last year.

''We plan to launch a bike in the 100 cc segment in the near future and are looking for a suitable location for a new plant.

We have already invested Rs 800 crore at our Manesar plant and will invest another Rs 300 crore in the next two years for capacity expansion,'' HMSI President and CEO Y Aoshima told reporters here today.

The company will also introduce new products in the Indian market, including a scooter with automatic gear by the end of this calendar year, he said at the launch of HMSI's new versions of Unicorn model.

''Out of the target sales of nine lakh units, 6.5 lakh units will be contributed by scooters and 2.5 lakh units by motorcyles,'' Mr Aoshima said.

The new 'Sporty Unicorn' has been priced at Rs 58,150 (ex-showroom Delhi) and will come in three colours -- red, silver and black -- to be available in the market from April 9.

It will be available in Pune, Kolkata and Bangalore at Rs 55,950, Rs 58,575 and Rs 55,555 respectively.

The company's 'Unicorn Grand Prix' has been priced at Rs 59,495 (ex-showroom Delhi) and will be available only between May 15-June 30 with only 2,500 units to rolled out during the period, the HMSI President said.

The company presently has 391 outlets which it will increase by 70 per cent to reach 663 outlets by 2008.

Out of this, 626 will be on a dealership basis while 337 will be HMSI showrooms, he added.

UNI