Plans afoot for Honda plant in Gujarat.

Honda may soon follow erstwhile JV partner Hero MotoCorp into Gujarat, with plans to set up its fourth two-wheeler plant in the state, sources told FE. The Japanese company is believed to have scouted for land near Sanand, where both Tata Motors and Ford have set up their manufacturing units.

The move is in line with Honda Scooter and Motorcycle India's target of displacing Hero from the top spot in the two-wheeler market by 2020 for which it has planned an annual capacity of 10 million units across 7-8 manufacturing units.

At present, it has two plants (Haryana and Rajasthan), with a third in Karnataka almost ready to start production in the April-June quarter this year, taking the output up to four million units/year.

FE