Honda Motors has announced that it will invest 400 crore rupees ($90 million) in its bike and scooter unit in India over the next three years.



Yukihiro Aoshima, president of Honda Motorcycle and Scooter India, speaking to reporters said that the investment would be made to upgrade production capacity to more than 2 million units by 2010 from 900,000 units currently.



It must be noted that most two-wheeler manufacturers, especially bike manufacturers have enjoyed a boom in India, Asia’s 3rd largest economy, driven by rising incomes, cheap loans, new launches and a shift in consumer preference to motorbikes from lower-margin scooters.



Already two-wheeler prices have drastically come down. So do we see further price reduction and more scooters on Indian roads? The answer to this is most likely yes!



Via: Reuters