Hero Honda, the largest domestic two-wheeler manufacturer, said it is currently doing a study to see where to set up its new factory and that it has not yet finalised any region.

"We are doing a complete feasibility study to see where to set up our new plant. After this is complete, we will decide on the investment and the capacity of the new plant," Mr Pawan Munjal, MD& CEO, Hero Honda Motors Ltd, said here recently. Responding to a question if the company has decided on a certain region in the country for the plant, amid earlier reports that it may be looking favourably at South India, he said, "We have not yet decided on this and are considering all regions. It is true that our facilities are currently concentrated in the North, so we may look elsewhere."

According to earlier reports, the Karnataka Government has already offered the two-wheeler company land at Hubli/ Dharwad. "Hero Honda has evinced interest in setting up a plant for manufacturing two- wheelers with an investment of Rs 2,000 crore in South India. We have been proactively promoting Hubli/Dharwad for their investments. The company is sending its technical team for evaluation in the first week of February," it said in a statement.

The company's expansion plans comes in perspective of Mr Munjal's recent statement in the company's third quarter earnings, where he said, "In view of the projected GDP growth and the continued success of the Government schemes directed at rural infrastructure and employment generation, we are expecting market demand to remain bullish. Therefore, going forward, we would also have to look at further augmenting our installed capacity in our existing manufacturing plants, and also at the possibility of a new plant sometime in the near future."