Honda Unveils New Engine Assembly Line At Manesar Facility, Aims For Larger Export Market Share

India's second largest two-wheeler manufacturer Honda Motorcycle and Scooter India (HMSI) inaugurated a new engine assembly line at its Global Resource Factory in Manesar, Haryana on Thursday.

This new assembly line, capable of producing 60 engines daily, will focus on CKD (completely knocked down) exports.

CKD refers to products sold or transported in a set of parts, that need assembly before use, reducing transport costs due to space efficiency. For instance, motorcycles are often transported in completely knocked-down kits.

"The new assembly line is equipped to produce engines for models ranging from 1100cc to 300cc, catering to diverse needs and preferences of customers across the globe," said the company through a press release.

India serves as a crucial production hub for Honda globally in two-wheeler manufacturing capacity. Currently, HMSI exports to 58 markets across Europe, Central and Latin America, the Middle East, South-East Asia, Japan, Australia, New Zealand, and SAARC countries.

"With this step, HMSI aims to boost its export capabilities, reaching new heights in market expansion and adherence to global quality standards," Honda Motorcycle and Scooter India managing director, president and CEO Tsutsumu Otani said.

The company has also seen robust domestic sales, with an 81 per cent year-on-year (y-o-y) jump in domestic wholesales (dispatches to dealers), totalling 3,58,151 units in March 2024, compared to 197,542 units in March 2023. On an annual basis, Honda Motorcycles' sales grew by 12.53 per cent to 45.30 lakh units in FY24, up from 40.25 lakh units in FY23.

In a historic milestone, the company achieved 6 crore domestic sales in India in March of this year.