Amidst the battle for market share among Hero Honda and Bajaj Auto, the market leader is in the process of finalising the state for its fourth plant. The company is reviewing around 10 options for the new plant, including places like Karnataka, Rajasthan and Gujarat.

However, according to Himachal Pradesh government, the officials from Hero Honda have recently visited various sites in areas like Una, Solan and a few other districts. The government further said that the company has also filed a written request a few days ago.

Himachal is not only a favourite option because of tax benefits and lower costs that the site offers but also because of the fact that it will add a lot of strategic importance for the company and it also has a plant in Haridwar, which is nearby Himachal and will add a lot of value to the supply chain mechanism of the company.

The company has sold 41,85,492 vehicles in the April-February 2009-10 and has a total capacity of five million units produced out of its plant at Haridwar and two in Gurgaon.