Honda Motorcycle and Scooter India (HMSI) plans to lift its Honda two-wheeler capacity from 62.5 lakh units a year to 80 lakh units by 2028 across its four Indian plants. President and CEO Tsutsumu Otani confirmed the plan, as reported by ET Auto on 12 October 2026.
The company says its current production is already running at full capacity. The expansion is expected to take 18 to 24 months and to create more than 2,000 jobs, according to the report.
Why Is Honda Expanding Two-Wheeler Production in India?
HMSI’s four plants are already running at full capacity, which is the starting point for the expansion. Raising annual output by 17.5 lakh units, from 62.5 lakh to 80 lakh, adds roughly 28 per cent to installed capacity. The report does not say how the new capacity will be split between plants, models or the domestic and export markets.
Exports are part of the picture. The CB350 is already shipped to Europe, and Otani described its sales there as “sales situation is also very good.” The CB500 is being evaluated as the next export model, though that work is at an early stage.
Which Export Markets Is Honda Targeting?
Honda has identified Africa, Central America and South America as key future export markets. Africa is seen as especially significant because of its geographic proximity to India. The report does not give export volume targets for these regions.
What Does the Expansion Mean for Local Sourcing and Supply Chains?
Some HMSI components undergo final assembly in India but rely on parts imported from Thailand, Japan and Europe. The company plans to manufacture more of these parts locally. HMSI is also working on steel and aluminium recycling, given India’s limited domestic supply of these materials. For component makers, higher Honda volumes could mean more demand from suppliers, although no supplier contracts or localisation targets were disclosed.
Market Reaction and Industry Response
No stock-market reaction, analyst commentary or trade-body statement on the announcement was found in the source report at the time of writing. HMSI is the Indian arm of Honda and the report did not include competitor responses.
What Happens Next?
The capacity build-up is scheduled over the next 18 to 24 months, with the 80 lakh unit target set for 2028. Watch for details on which plants will expand, any new investment figures, and whether the CB500 moves from evaluation to an export decision.
Frequently Asked Questions
How much will Honda two-wheeler capacity in India rise?
HMSI plans to raise annual output across its four Indian plants from 62.5 lakh units to 80 lakh units by 2028.
How many jobs will the Honda expansion create?
The expansion is expected to create more than 2,000 jobs over the next 18 to 24 months.
Which markets will Honda export to from India?
The CB350 is already exported to Europe. Africa, Central America and South America are key future markets, and the CB500 is being evaluated as the next export model.
Source: ET Auto, as reported by Autocar India on 12 October 2026.
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