Suzuki Motorcycles to spend Rs 2,000 crore for Rohtak plant .

The Government of Haryana on Friday gave a green signal to Suzuki Motorcycle India Pvt Ltd's proposal to establish a plant in three phases at Rohtak, entailing an investment of Rs 2000 Crore .

The project will be done in three phases. During the first phase the company will invest around Rs 500  crore which will be completed in 2014 with a capacity of 5 lakh units per year . The project will be completed by 2019 and after the full functioning of the plant , it would be able to churn out 20 lakh units per year which is an astonishing figure .

Currently Suzuki Motorcycle India operates a manufacturing plant in Gurgaon having annual capacity of 2.5 lakh  units per year .
Overall Suzuki is going about their business not in a rapid pace however in a very ambitious pace. Suzuki needs to step on the accelerator to stay in the league of other motorcycle companies operating in India.

Recently the company had launched the Suzuki Swish motorcyle for the Indian roads. Click here to read more.
Do you own a suzuki motorcycle or are you considering one in the near future , this plant will sure help Suzuki to boost up their production and improve their services? 

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Hero Motocorp heads to Africa

In a landmark development, the world’s largest two-wheeler manufacturer, Hero MotoCorp Ltd. (HMCL), recently had  announced forging a strategic partnership with Erik Buell Racing (EBR) of the US, encompassing multiple areas of collaboration to help them develop high end bikes.

After the  the major announcement regarding their tie-up with Erik Buel Racing for technological assistance and cutting edge performance ,Hero Motocorp later announced that it would be making its own engines by teaming up with the world’s largest privately-owned engine developer, AVL of Austria , to develop technology for its bread-and-butter 100cc bikes such as Splendor and Passion.

Hero MotoCorp has finally decided to get things moving with regards to its technology deficit and now they are on an expansion spree , in search of potential markets to globalise their brand . This time they are heading to Africa to set up manufacturing and assembly plants there . Hero Motocorp have  identified growth markets in Africa and thats the reason they think they have good potential to take this market by storm .During their partnership with Honda , they were restricted to India  . Now that they have the opportunity to globalise their brand , we must say they are leaving no stones unturned . And mind you this is just the beginning of Hero Motocorp's expansion spree , Munjal said Hero MotoCorp had sent teams to the continent to find out potential markets for two-wheelers.

"We believe their is a unique opportunity for us to go and do business in two-wheeler segment there. Many of the African countries have shown rapid growth in the two-wheeler segment. Or teams have been visiting almost all of Africa."

Mujal said that although many foreign firms were operating there, the company's operational capability and production capacity would work in its favour.

"Many of our Indian friends have gone there. There are also many Chinese and Thai companies present there, even older and larger Japanese players are there. But because of the way we operate, our scale and volume, we feel Africa offers a great promise."

After their supremacy in India in the two wheeler segment for nearly 10 years ,the company has decided to go global ,they are  currently eying new markets such as Africa, Southeast Asia and Latin America .

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Hero MotoCorp To Spend Rs 1,200 Crore For Gujarat Plant

Hero MotoCorp is expected to announce plans to set up its fourth plant in Gujarat in March itself, even as talks speed up for a fifth facility likely at Karnataka.


Apart from feeding growing local demand, additional capacity would help the two-wheeler market leader to meet its USD 1 billion export target by 2020.

In a deal that has already been finalised with the Gujarat government, the company is likely to invest about Rs 12 billion for a two-million-unit capacity plant set up over two phases, sources close to the development said.

Chosen because of the proximity to ports, the location is a 300-acre plot close to General Motors` car plant in Halol, Central Gujarat.

``Within this month, I should be making the announcement for the new plant,`` Pawan Munjal, Managing Director & CEO of Hero MotoCorp, told Business Line. ``It will get to those levels (as Haridwar plant`s 2.5 million unit annual capacity), but will have modular capacities.``

For the fifth plant expected to focus on the south Indian market, a 500-acre plot near Tata Motors` plant at Dharwad, Karnataka, has been offered by the Karnataka Government, State officials said.

This comes after months of discussions that company officials reportedly held with many States such as Tamil Nadu, Rajasthan and Himachal Pradesh.

While the fresh capacity is expected to come only by about 2014 - the same time when Hero`s first self-developed models are launched, the company is also expanding yearly production beyond seven million units at existing plants in Haridwar, Gurgaon and Dharuhera. This will help it stay ahead of the Indian two-wheeler industry, which is set to grow at a CAGR of 14% over the next five years.

``Some investments are being made at existing plants, so capacity should go up to over 7.4 million units in the existing operations. We`re also working on a centre for after markets parts,`` Munjal said

The company's net profit for the third quarter ended December, 2011 has increased by 43% at Rs 613 crore against Rs 429 crore for the corresponding quarter last year. Total income has increased 17% to Rs 6,108 crore for the quarter under review from Rs 5,224 crore for the same quarter a year ago.
Hero Motocorp has definitely stepped on the accelerator with this move  to leave all the other companies beyond its reach . Lets see how it fares in its production and marketing strategies with its swift moves to conquer the Indian and the overseas market.
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Honda Motorcycle and Scooter India start phase II of Tapukara plant in Rajasthan

Honda Motorcycle & Scooter India (HMSI) started the second phase of production operations at their second two-wheeler production plant in the Tapukara Industrial Area in Rajasthan.

HMSI recently replaced TVS motors as third largest two wheeler manufacturer and it is just behind of Hero Motocorp and Bajaj Auto. The new assembly line will add 0.6 million units annual production capacity. With addition of second assembly line HMSI will able to produce 2.8 million units annually in India.

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