There were clues already which indicated the world’s largest two wheeler manufacturer’s intension to become a bit larger by setting up its fourth plant. This process is now in its finalization stage. According to our sources close to Hero Honda, the Karnataka Government is in the process of allotting a 500 acres piece of land in Dharwad to Hero Honda where the firm will set up a Rs. 2,000-crore two-wheeler manufacturing plant. The plant will boast of an annual capacity of 1 lakh units.
The two-wheeler manufacturer had previously hinted about its desire to invest Rs. 2000 crore for a manufacturing facility in South India. The company had eyed the Hubli/Dharwad region since quite a long time. Earlier in February, the firm had reportedly sent a technical team for evaluation in the region.
The firm currently has three manufacturing plants, two in Haryana and one in Uttarkhand. The combined capacity of all the three plants is over 5 million units a year. Hero Honda has managed to sell more than 3.4 million units in the first nine months of this fiscal year. The firm has planned 3 more launches for this fiscal year out of which, one will be a scooter. The firm has confirmed its plans to concentrate on the scooter and premium bikes segment. NDTV had recently reported that Hero Honda has set an ultimate target of selling 5.6 million units in the next fiscal year with a growth of 15 per cent. According to the channel, the company has planned to introduce 13 new products in the next 12-18 months.