The news follows last month’s announcement that Honda will sell its stake in Hero Honda which holds the largest share of the Indian motorcycle market with sales estimated at over 5 million units.
As expected, Honda will redirect resources from Hero Honda to HMSI. The wholly-owned subsidiary currently produces 1.55 million units a year out of its facility in Haryana, India. A second facility is set to open later this year in the Indian state Rajasthan with a planned production of 600,000 units for 2011. Nikkei reports a third plant is in the works for the state of Andhra Pradesh.
