New Delhi, Sept. 26: Honda Motors and Scooters India (HMSI) will invest Rs 400 crore over the next three years to ramp up its production to 1.2 million two-wheelers per annum.

This will take HMSI’s total investment in India to Rs 1,000 crore. A wholly owned subsidiary of Japan’s Honda Motor Company, HMSI has invested around Rs 600 crore so far.

“Our combined capacity of production for scooters and motorcycles stands at nine lakh vehicles per annum. We will take this to 1.2 million units in the next three years,” said Yukihiro Aoshima, president and CEO of HMSI.

The investment will, however, be funded entirely through internal accruals.

The company, which sold around six lakh two-wheelers last year, is targeting to sell 7.5 to eight lakh this year. Of this, approximately five lakh will be scooters and the rest will be motorcycles.

Once the company reaches a capacity of 1.2 million units, it will focus on producing equal number of scooters and motorcycles, Aoshima said. Meanwhile, HMSI said it has sold one million units of the Activa and plans to introduce more models to strengthen its position.

“We are looking at launching two variants of the existing two-wheeler models this fiscal,” said Aoshima. He, however, refused to disclose any details.

Senior HMSI officials said the recent strike by contract workers had little impact on the company’s production and sales.

“The matter was solved between the contractors and their workers. We are looking ahead. There was no loss of production,” Aoshima said.