Honda Motorcycle & Scooter India (HMSI) will invest Rs 920 crore rupees ($108 million) to add a fourth production line at its Vithalapur plant in Gujarat, the company said on Thursday. The move aims to meet rising demand in the world’s largest two-wheeler market.
The announcement came during an event marking Honda’s global milestone of producing 500 million two-wheelers, held at the Vithalapur facility near Ahmedabad.
The new line, set to start operations by 2027, will boost the plant’s annual capacity to 2.61 million units, making it one of the largest two-wheeler manufacturing sites globally, HMSI said.
HMSI currently operates four manufacturing facilities in India—Manesar, Haryana (38,000 units), Tapukara, Rajasthan (1.3 million units), Narasipura, Karnataka (2.5 million units), and Vithalapur, Gujarat (1.96 million units)—with a total capacity of 6.14 million units.
The additional fourth line at the Vithalapur facility will add 650,000 units to its annual production capacity, increasing the plant’s total output to 2.61 million units. With this expansion, HMSI’s total production capacity across India will rise to approximately 7 million units by 2027.
HMSI’s CEO, Tsutsumu Otani, emphasized the investment’s role in supporting India’s growing market and expanding exports to over 62 countries, including Central and South America. The expansion will also create 1,800 jobs, supporting local economic growth.
Following a third line added in January 2024, the Vithalapur plant’s capacity will rise from 1.97 million units annually to 2.61 million units. This will increase HMSI’s total Indian production capacity to nearly 7 million units annually.
HMSI also celebrated its 25th year in India and a local milestone of 70 million two-wheelers produced. The company, known for its Activa scooter, reiterated its commitment to carbon neutrality by 2050 and zero traffic-related pollution for its motorcycles and cars globally by the same year.
As part of its community initiatives, HMSI donated 50 Quick Response Team vehicles to the Gujarat Police. The company’s social programs have impacted 3.2 million lives in Gujarat through water conservation, healthcare, and agriculture support while promoting workforce diversity, claimed the company’s MD & CEO.
The expansion has to be seen in the context of HMSI’s stated ambition to replace Hero MotoCorp as India’s largest two-wheeler maker. In January Tsutsumu Otani, President, CEO, and Managing Director of HMSI, emphasized Honda’s goal to capture the largest market share and make India an export hub, leveraging automation and local supplier cultivation. Since their 2011 split, Hero has dominated motorcycle sales in India, particularly in rural markets with models like Splendor, while HMSI leads the scooter segment with Activa, holding over 60% market share.
In April 2025, HMSI dispatched 480,896 units (422,931 domestic, 57,965 exports) wholesales, outpacing Hero’s 305,406 units (288,524 domestic, 16,882 exports), a gap of 175,490 units. HMSI’s retail market share has also grown steadily to within around 1.5 percentage points. HMSI’s Shine 100 challenges Hero’s rural dominance, while Hero counters with premium motorcycles like Mavrick 440 and electric scooters under Vida, which sold 7,116 units in April 2025.
Both companies are expanding into EVs, with HMSI launching Activa e and QC1 and planning a dedicated EV plant by 2028, while Hero strengthens its Vida lineup. Hero’s extensive 6,000+ dealership network and brand loyalty give it an edge in retail, despite HMSI’s wholesale lead. The intensifying rivalry, driven by Otani’s strategic vision, reflects shifting market trends toward scooters, premium bikes, and electrification, with rural penetration and innovation shaping the race for dominance.