The proposed investment will come from internal accruals. The company has already invested Rs 600 crore in setting up the fully owned manufacturing facility.
The bike-maker will expand its capacity to 1.2 million from the current 9 lakh.
The expansion will be done for motorcycle and scooter equally. In the 2005-06 fiscal, HMSI sold 6 lakh units of motorcycles and scooters with total turnover of Rs 1,500 crore.
N K Rattan, general manager, Sales and Marketing, HMSI, said, "The company would further strengthen its position in 125-150cc segment and launch new product shortly. We are also studying the scooter market and would bring suitable product in the future. Some models could also be launched during this fiscal."
Rattan said they have already started sharing market research information and other key strategies among the Honda group companies and have formed joint committee to develop the future plans for the entire group.
© 2025