Strategic Update: HMSI Capacity Expansion & Global Export Strategy

Executive SummaryHonda Motorcycle & Scooter India (HMSI) has finalized a comprehensive scaling initiative aimed at consolidating India’s position as its primary global manufacturing and export hub. By 2028, HMSI plans to scale its aggregate annual production capacity from over 6.0 million units to approximately 8.0 million units. This production boost will generate more than 3,800 professional employment opportunities across its expanded ***** Export MomentumHMSI is successfully leveraging localized cost structures to feed growing international demand across 65 countries, including highly mature markets such as Japan and Europe. The export volume trajectory highlights steady compounding:FY24: 0.36 million unitsFY25: 0.51 million unitsFY26: 0.62 million unitsCapital Expenditure & Capacity RoadmapPlant LocationCapEx AllocationCapacity AdditionTimelineStrategic ImpactVithalapur, Gujarat (4th Line)₹920 Crore650,000 units2027Achieves total capacity of 2.61M units; becomes Honda's largest motorcycle assembly plant ***** Rajasthan (3rd Line)₹1,500 Crore670,000 units2028Achieves total capacity of 2.01M units; drives deep regional ***** Diversification & Market TransitionMulti-Pathway Approach: Management maintains a balanced, risk-hedged product roadmap spanning Internal Combustion Engines (ICE), Electric Vehicles (EV), and alternative fuel technologies rather than executing a singular technology ***** Strategy & Regulatory Compliance: HMSI acknowledges regional zero-emission mandates.