Honda Motorcycle & Scooter India inaugurated its 4th two-wheeler plant in Gujarat India

by Shrutee K/DNS

Ahmedabad, February 17, 2016–Aggressively investing to ‘Make in India’ for India and the world, Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) inaugurated its landmark fourth manufacturing plant at Vithalapur (Mandal taluk, Ahmedabad district, Gujarat) in India. Honda’s latest green factory has come up in a record time of 13 months!

The historic ceremony was graced by chief guest:Mrs. Anandiben Patel (Hon’ble Chief Minister of Gujarat),Mr. Noriake Abe (Operating Officer, Chief Operating Officer - Asia and Oceania Regional Operations, Honda Motor Co., Ltd.), Mr. Shinji Aoyama (Operating Officer and Director, Chief Operating Officer, Motorcycle Operations, Honda Motor Co., Ltd.), Mr. Toshiyuki Shimabara, (Operating Officer, Executive Incharge of Motorcycle Production, Motorcycle operations, Honda Motor Co., Ltd), Mr. Keita Muramatsu(President & CEO – Honda Motorcycle & Scooter India Pvt. Ltd), Mr. ToshinobuMotai(Chief Production Officer, HMSI), Mr. V Sridhar (Senior Vice President& Director – Corporate Office Production, HMSI), Mr. AnupamMohindroo(Senior Vice President& Director – Purchase Head office, HMSI) andMr. Yadvinder Singh Guleria (Senior Vice President – Sales & Marketing, HMSI).

Elaborating how Asia Oceania region (which includes India) contributes 56% to Honda’s global sales (2Wheeler, automotive and power product) and how India leads the growth momentum,Mr. NoriakiAbe, Operating Officer, Chief Operating Officer - Asia and Oceania Regional Operations, Honda Motor Co., Ltd. said, “In case of 2wheelers, ASEAN countries contribute 13.8 Million Sales which is 80 % of Honda’s global unit sales with the production facility in 9 countries. India is the fastest growing economy in the world and is one of the most important and fast growing markets for Honda. With this vision of growth, today we have achieved a new milestone for our business in India. We are inaugurating our 4th factory in Gujarat. This will make India to attain No. 1 position in all ASEAN countries. We would expect this growth momentum to continue for Indian market as well as expect Indian operation to be export hub for ASEAN countries. Our goal is not only to expand our operation, but to contribute to the prosperity of society in India and Gujarat. This plant would be a benchmark plant in India not only in terms of volume, but safety, quality, morale and human aspect.”

Detailing on how it is a matter of great pride that Gujarat is the home of state-of-the-art scooter only manufacturing facility and Honda’s future expectations from India, Mr. Shinji Aoyama, Operating Officer and Director, Chief Operating Officer, Motorcycle Operations, Honda Motor Co., Ltd. said, “India plays a key role for Honda’s 2wheeler business.In 2015 Honda’s global sales of all products was 28 million units out of which global 2wheeler sales stood at 17million units. Today, 25% of the total Honda two-wheelers sold across the world come from India. We will continue to invest in technology, for the Indian market. Through training and cross market collaborations, we want to make India Honda’s technology hub as well. Driven by the visionary growth-centric outlook of the Government, there is an increased focus on investing in roads and infrastructure. These factors imply that the best days for the scooter market in India, are yet to come!”

Elaborating on the trend of increasing demand for automatic scooters in Indian market and how bringing a scooter only plant in India makes business sense for Honda, Mr. Keita Muramatsu – President & CEO, Honda Motorcycle & Scooter India Pvt. Ltd. said, Increasing Scooterization, a trend seen earlier in developed markets of the world, is the key driver for Indian 2Wheeler industry today. Leading this change from the front is Honda 2Wheelers - the undisputed market leader in this segment in India with a market-share of 56% and growing. Gujarat is an extremely productive market for Honda. We have a market share of 62% of the scooter segment here. As we gear up to take up this challenge of meeting the customer demand, Gujarat is an ideal home and a springboard to achieve greater heights. Now, the Honda automatic scooter you ride will not only be “Made in India” but also “Made in Gujarat.”

ANNUAL PRODUCTION CAPACITY:

Spread over 250 acres, Honda’s Fourth plant operations are scheduled in two phases. The first production line of 6 lac units’ annual production will soon be followed by the 2^nd Line of additional 6 lac units’ annual production in the middle of 2016. In total, Honda will manufacture 1.2 million automatic scooters annually from its fourth plant. The new Fourth plant will increase HMSI’s total annual production capacity to 5.8 million units, including 1.6 million units at first plant (Haryana), 1.2 million units at second plant (Rajasthan), 1.8 million units at third plant (Karnataka) and another 1.2 million units at the fourth plant (Gujarat).

EMPLOYMENT & INVESTMENT GENERATION:

With its fourth plant, Honda 2Wheelers is giving a big boost to economic development in Gujarat. Honda and its suppliers have together invested close to INR 2,200 croreand generated nearly 9,000 new employment opportunities in the State. Directly, Honda’s fourth plant will employ close to 3,000 Associates and entails a total investment of INR 1,100 crore.

Idirectly, 22 existing and new suppliers have followed Honda in setting up their manufacturing facilities in Gujarat. In total, suppliers have made an additional investment of INR 1,100 crore and created 6,000 additional employment opportunities at their plants.

A PLANT OF MANY FIRSTS:

Honda’s fourth 2Wheeler plant has many technology firsts. This is Honda’s first 2Wheeler plant worldwide where the entire press shop will be fully automated and operated by robots 24-hours.. For the first time in its Indian 2wheeler operations,Honda has introduced vacuum cooling technology and nitrogen pressurization in die-casting, use of digital eye technology in various processes andtraceability of in-house parts with QR codes in machine shop. Honda has also introduced higher automation to reduce operator fatigue through fully automated press shop, material handling robots for full frame in weld shop and automatic transfer of front fork assembly in frame assembly.

A GREEN FACTORY IN TRUE SENSE:

The new plant is as much environment friendly as it is technologically advanced. Over 1/3^rd of the total plant area is a dedicated green zone. This is the first of Honda’s 2Wheeler plant to introduce an INTEGRATED ZERO LIQUID DISCHARGE FACILITY closely aligned to Honda’s 3R principle of – Reduce, Reuse and Recycle. To co-exist and harmonize with local society, the 4^th factory infrastructure has been designed under Honda’s concept of “Joy to the Next Generation”. Maximum natural lighting and ventilation coupled with adoption of LED lights proactively reduces energy consumption during production. Use of intelligent automations reduce fatigue and stress levels of our associates. As a “Green Factory” concept, Honda’s fourth plant has a planned internal rain harvesting system.

POSITIVE CONTRIBUTION TO SOCIETY:

With its philosophy of ‘Being a Company that society wants to exist’; Honda has accelerated development in the Ahmedabad district with the establishment of its Fourth plant. Investing close to INR 60 million in and around Vithalapur, Honda is empowering local population to emerge as main beneficiaries of this growth story. As an extension of its global corporate philosophy, Honda’s CSR approach in Gujarat focuses on holistic economic progress, social enrichment, better healthcare facilities and infrastructure development with environment conservation.