Honda Motorcycle & Scooter India (HMSI) has announced plans to create over 3,800 new jobs in the country by 2028, driven by a major expansion of its two-wheeler manufacturing capacity. The move comes as the company seeks to meet growing demand from both domestic and export markets.
Investment and Capacity Expansion
The Japanese automaker will invest approximately ₹2,500 crore to increase its annual production capacity from the current 6.4 million units to 7.5 million units by 2028. This expansion will be carried out at its existing plants in Manesar (Haryana), Tapukara (Rajasthan), and Narsapura (Karnataka). The additional capacity will primarily cater to the rising export demand, particularly from markets in Africa, Latin America, and Southeast Asia.
Job Creation Details
According to HMSI, the expansion will generate over 3,800 direct jobs, including positions in manufacturing, engineering, and quality control. Indirect employment opportunities in the supply chain and ancillary industries are expected to add several thousand more. The company noted that the new roles will be filled over the next two years, with a focus on local hiring and skill development.
Export Demand Driving Growth
As export demand continues to increase, HMSI President Atsushi Otani said, "We are investing in expanding our manufacturing capabilities to efficiently serve both domestic and overseas customers." He added that India is emerging as a key global hub for two-wheeler production, given its cost competitiveness and skilled workforce. HMSI exported over 350,000 units in the last fiscal year, and the company aims to increase this to 500,000 units annually by 2028.
Domestic Market Context
India's two-wheeler market has been recovering steadily after a slowdown, with sales growing 8% year-on-year in the first half of 2026. Honda currently holds a 27% market share in the domestic segment, competing closely with Hero MotoCorp. The expansion is also expected to help Honda reduce its import dependence by localizing production of key components, including engines and transmissions.
Government and Industry Response
The announcement has been welcomed by state governments in Haryana, Rajasthan, and Karnataka, where the expansions are planned. Industry analysts view the move as a positive signal for India's manufacturing sector, aligning with the government's 'Make in India' initiative. HMSI has also committed to sustainable manufacturing practices, including a 30% reduction in carbon emissions per unit by 2028 through increased use of renewable energy and water recycling.
