Honda Motor plans to invest ₹9.2 billion ($107 million) expanding its Gujarat motorcycle plant, adding 650,000 units of annual production capacity by 2027 as the Japanese manufacturer doubles down on India’s growing importance in its global strategy.
The expansion will create 1,800 jobs and make the Vithalapur facility Honda’s largest motorcycle assembly plant worldwide, with total capacity reaching 2.61 million units annually. Honda executives said the plant will serve as a strategic export hub for Latin America and other markets.
The investment comes as Honda recently overtook rival Hero to claim India’s top monthly motorcycle sales position for the first time, according to industry data. India represents Honda’s second-largest motorcycle market globally, where the company has produced 70 million vehicles since entering in 2001.
However, the timing raises questions about Honda’s commitment to electrification. While the company announced ambitious electric motorcycle plans earlier this year, this expansion focuses on traditional 125cc gasoline-powered bikes – a segment facing increasing pressure from government incentives favoring electric alternatives.
Honda’s announcement coincided with the company celebrating 500 million motorcycles produced globally since 1949. The milestone event served as backdrop for revealing the Gujarat expansion, suggesting Honda views India as central to its next growth phase despite mounting competitive pressures in the world’s largest motorcycle market.
