Honda Motor Co, the world’s biggest maker of motorcycles and scooters, will build a second factory in India as demand grows in the world’s second-largest two-wheeler market. The company is conducting a feasibility study for a new plant, Yukihiro Aoshima, president of Honda’s Indian unit, said in New Delhi today. The unit now has an annual production capacity of 1.2 million motorcycles and scooters in India. Honda’s new factory and its plans to sell new models also increase competition for its affiliate Hero Honda Motors, India’s biggest motorcycle maker. Demand may grow at an average 10 per cent till the end of the decade, helped by purchases by some 500 million Indians who are aged 25 or below, according to the Society of Indian Automobile Manufacturers. There is a huge young population in India that is taking to the motorisation,” Aoshima said. “The market is big enough in India for both us and Hero Honda to co-exist.”