Honda to Invest ₹1,500 crore in Rajasthan plant, targets 8 million units capacity in India by FY28

Honda Motorcycle & Scooter India (HMSI) is ramping up its manufacturing footprint with a fresh capacity expansion at its Tapukara facility in Rajasthan, as the company looks to capitalise on sustained growth in India’s two-wheeler market.

The wholly-owned two-wheeler  subsidiary of Honda will set up a third production line at its Alwar-based plant with an annual capacity of 6.7 lakh units, scheduled to go on stream in 2028. With this addition, the total production capacity of the Tapukara facility will rise to 2.01 million units per year.

Capacity push anchored in commuter segment demand

The expansion is part of a broader ₹1,500 crore investment plan aimed at strengthening HMSI’s production network and enhancing flexibility to respond to evolving demand trends. The new line will primarily manufacture commuter motorcycles and scooters, the largest segment in India’s two-wheeler market.

“Strengthening our production ecosystem at Tapukara is a key step towards building resilience and flexibility in our supply chain,” said Tsutsumu Otani, adding that the move will help the company respond more effectively to market demand.

Regional manufacturing boost, job creation in focus

The investment is also expected to generate over 2,000 jobs, providing a boost to the local manufacturing ecosystem. Rajasthan Chief Minister Bhajan Lal Sharma said the expansion reinforces the state’s positioning as a manufacturing hub and will support employment and industrial growth.

HMSI currently operates four manufacturing plants in India with a combined annual capacity of 6.25 million units. The company has produced over 70 million units since commencing operations in 2001, underscoring its scale in the domestic market.

Multi-plant expansion to drive scale-up to 8 million units

The Tapukara plant itself has seen steady capacity ramp-ups—from 0.6 million units in 2011 to 1.3 million units currently—driven by automation and efficiency improvements. Capacity is expected to reach 1.34 million units by FY26 before the new line becomes operational.

In parallel, HMSI is also adding a fourth production line at its Vithalapur plant in Gujarat, slated for commissioning in 2027.

With ongoing expansions across facilities, HMSI aims to scale its total production capacity in India from 6.25 million units at present to around 8 million units by FY28, positioning itself to tap into long-term growth in the world’s largest two-wheeler market.

The Japanese automaker, which also runs a carmaking arm, aims to to grab the leading share in India’s two-wheeler market from its erstwhile partner Hero MotoCorp.