Another indication that major manufacturers are looking to emerging markets for successful sales, Honda announced they would build a second motorcycle factory in India.

Just outside of Delhi, the new plant is scheduled to become operational in the latter half of 2011 with annual production capacity of 600,000 units. Further, Honda Motorcycle & Scooter India (HMSI) is expanding annual production capacity of its existing plant from the current 1.25 million units to 1.55 million units by the end of this month, with a further expansion to 1.6 million units already scheduled for next year.

As a result, HMSI’s total annual production capacity will be 2.2 million units when the second plant becomes operational.

The move comes as no surprise to industry experts or even the casual observer. India represents the world’s second largest motorcycle market behind only China, and industry-wide motorcycle sales in India for 2009 reached 8.78 million units (up 19% compared to 2008). HMSI was established as a wholly-owned motorcycle production and sales subsidiary of Honda in 1999 and began production in 2001. HMSI’s sales have grown steadily with 2009 sales of approximately 1.09 million units (up 11% compared to 2008) achieving a record high for nine consecutive years.

But don't expect any heavy cruisers or performance sportsbikes to ride off Honda's latest factory floor. The Japanese motorcycle manufacturers focus for India lies with smaller scooters and motorcycles, no larger than 110cc, which accounts for approximately of 50% of the country's total two-wheeled market.