The new plant will be approximately 90 km from Delhi and it is scheduled to become operational in the latter half of 2011 with annual production capacity of 600,000 units.
In addition, HMSI is expanding annual production capacity of its existing plant from the current 1.25 million units to 1.55 million units by the end of this month, with a further expansion to 1.6 million units already scheduled for next year. As a result, HMSI's total annual production capacity will be 2.2 million units when the second plant becomes operational.
The new plant will initially have approximately 2,000 employees. The total investment will be approximately 4.7 billion Rupee (approximately $1 million).
India represents the world's second largest motorcycle market behind only China, and industry-wide motorcycle sales in India for 2009 reached 8.78 million units (up 19% compared to 2008).
The company expects sales to rise 20 percent, powered by 110cc CB Twister bike, its first offering in this category that will compete with Hero Honda's Passion and Splendor and Bajaj Auto's Discover DTSi. The CB Twister easily found its way through on the 100-110cc market segment, which accounts for approximately 50% of total motorcycle market. The product lineup is also enhanced with last year's full model change of the Activa 110cc scooter.
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