Hero Honda plans to invest Rs 500 crore, to set up its third manufacturing plant, in the next five years, and expects to scale up its production capacity from the current three million a year. The company is yet undecided on the location of the new plant, expected to be set up by next year. Announcing this at a press conference, Brijmohan Lall Munjal, chairman, Hero Honda Motors Ltd, said that the initial investment would be Rs 300 crore. He also stressed that a suitable location would be decided weighing the advantages of manufacturing, supply chain, and market potential. Southern India accounts for 25 per cent of Hero Hondas sales and its vehicles are currently sourced from its two plants at Gurgaon, and Daruhera in Haryana. Munjal also ruled out plans to set up a manufacturing plant overseas. He said that, with a robust growth in the domestic market, there was no need to look outside the country. Hero Honda has. however, increased their export by 50 per cent last year.