HMSI to set up 100 cc bike plant, ramp up prod to 9 lakh units

New Delhi, Mar 19 (UNI) Honda Motorcycle and Scooter India (HMSI) will launch a new bike in the 100 cc segment and is scouting for locations for setting up a new plant for the purpose.

HMSI, a 100 per cent subsidiary of Japan's Honda Motors, also plans to reach a production capacity of nine lakh units per annum by 2007-08, a growth of 27 per cent, from a current 7.2 lakh units per year capacity.

''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 will also introduce new products in the Indian market, including a scooter by the end of this calendar year,'' HMSI President and CEO Y Aoshima told reporters at the launch of the company's latest version of Unicorn.

He declined to comment on the investment details.

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

The new model of Unicorn is 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.

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

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

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

UNI