Honda Motor Co would build a fourth motorcycle factory in India with initial investment of roughly $175 million and annual output capacity of 1.2 million vehicles.
The factory, to be located in Gujarat, is due to start production in the latter half of the business year ending in March 2016, the world's biggest motorcycle maker said in a statement on Wednesday.
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About 3,000 new jobs will be created at the plant, which will mainly manufacture scooters, demand of which has surged in the world's biggest two-wheeler market.
Last month, Honda expanded production capacity at its third motorcycle factory in India by 600,000 vehicles a year. The fourth plant will bring Honda's total capacity in India to 5.8 million motorcycles a year, the company said.