The company, which has three facilities in Haryana, Rajasthan and Karnataka, expects the new plant to be operational by second half of 2015-16.
"Honda is going to establish a fourth facility to produce scooters in India. The plant will be set up in Ahmedabad and have a capacity of 1.2 million units," HMSI President and CEO Keita Muramatsu told reporters here.
HMSI will invest Rs 1,100 crore in the facility, which will be operational by second half of 2015-16, he added.
The new facility will have two assembly lines for scooters and would create employment for 3,000 people.
The company's current capacity is 4.6 million units.
HMSI, which manufactures motorcycles like CB Unicorn and CB Shine in India, today unveiled a new scooter Activa 125 and CBR 650F (bike).
Activa 125 is expected to be available in India in the first quarter of FY'15, while CBR 650F will be available from 2015-16.