New Delhi, Apr 10 (PTI) Honda Motorcycle and Scooter India (HMSI) is mulling its fifth manufacturing facility after 2020, to cater to expected spurt in demand for its products.

The company, which is already the top contributor to parent Honda’s global two-wheeler business, currently has four manufacturing plants in the country with an installed capacity of 64 lakh units per annum.

“We expect two-wheeler sales of the entire industry to dip post 2020 as product prices would increase (due to implementation of BS-VI emission norms), but after it stabilises, the industry is expected to grow,” HMSI President and CEO Minoru Kato told reporters here.

Till 2020, the company would manage demand from the current facilities by increasing efficiencies, he added.

“But after 2020, we can add production capacity,” Kato said.

When asked if it means that the company would set up a new plant, he said, “Possibly. But it is still under consideration.” Kato further said HMSI, which has aspirations to become the top two-wheeler maker in India, ahead of Hero MotoCorp, would prefer to have more production capacity.

“It is the responsibility of the global headquarter to allocate capacity…we would like to raise our hand (for more capacity),” he said.

Enhanced capacity would also help in meeting HMSI’s ambitions of becoming an export hub, the potential for which would increase after implementation of the BSVI emission norms as the company would be able to cater to more overseas markets, Kato said.

He, however, declined to comment on the timeline as well as location of the expected HMSI facility.

At present, HMSI has four manufacturing plants — Manesar (Haryana), Tapukara (Rajasthan), Narsapura (Karnataka) and Vithalapur (Guajarat).

When asked about company’s ambition to become the top two-wheeler maker in the country, Kato said, “We want to become number one as early as possible, but still there is lot of gap between us and the leader.” In 2017-18, HMSI’s sold 57,75,287 units of two-wheelers in the domestic market, while Hero MotoCorp sold 73,82,718 units.

Last year, Honda Motor Company chief officer – regional operations (Asia and Oceania), Shinji Aoyama, had said that he expects HMSI to be number one two-wheeler maker in the country by 2020.

This is published unedited from the PTI feed.