(From left) Honda Motorcycle CEO Y. Aoshima, Asian Honda Motor executive vice-president M. Sudo, Honda R&D managing director M. Hamane and director Y. Mizutani in New Delhi on Wednesday. Picture by Ramakant Kushwaha

New Delhi, March 8: Honda Motorcycle and Scooter India (Pvt) Ltd, a subsidiary of Japanese major Honda, will invest Rs 400 crore in its Indian facilities over the next three years.

The company is planning to set up another manufacturing facility near its existing factory in Haryana.

?We aim to double our production capacity to two million units by 2010. We want to increase our production and for this purpose we will set up another plant. We are still studying the possibilities. Haryana is an attractive destination,? said Y. Aoshima, president and CEO, Honda Motorcycle and Scooter (HMSI).

Asked whether the company?s decision to re-invest in Haryana will be influenced by the severe labour unrest it faced last year, he said, ?Of course not, labour unrest can occur anywhere. That will not be a consideration while choosing our location.?

HMSI today launched its second bike ? the 125cc Shine. It aims to sell a total of 1,70,000 units of the new bike in the next financial year.

The bike, which is priced at Rs 45,120 (in Delhi) and Rs 47,065 (for disk brakes version), will compete with market leader Hero Honda Motors?s Super Splendor and Glamour, Bajaj Auto?s Discover and TVS Motors?s Victor GLX.

In the last five years, HMSI has invested Rs 700 crore in its Indian operations. It has cornered a market share of about 8 per cent, primarily due to its dominance in the scooter segment.

HMSI will spend the Rs 400 crore for increasing the capacity and model launches. ?We will launch at least one model each year,? Aoshima said.

At present, HMSI sells three scooter models, Dio, Activa and Eterno, and a 150-cc bike, Unicorn, in India.

It would launch Shine in phases, beginning with North and Central India and followed by the South, West and East zones. The company said the 125-cc segment was witnessing a high growth.

Whether entry into the big volume segment meant direct competition with Hero Honda, its joint venture partner in India, Aoshima said the two companies worked on future product line-ups through joint meetings.