Cars: Honda to set Second Car Unit in Rajasthan

Honda Motor Corp., the second biggest Japanese automaker, is currently setting up its second car manufacturing unit in Rajasthan. The company plans to invest approximately Rs 10 billion to build the unit that has a capacity of producing 60,000 units in the initial phase.

According to Masahiro Takedagawa, President and Chief Executive of Honda Siel Cars, Honda s India unit, we are setting up our second plant in Bhiwadi. The unit will have an investment of around Rs 10 billion.

In a seminar hosted by the state government together with the Federation of Indian Chambers of Commerce and Industry (Ficci), Takedagawa said, it will be operational by 2009 and have a capacity of 60,000 units in the first phase.

The company decided to put up the plant in Rajasthan so that it could easily cater to India s largest market. By fact, the northern and eastern regions cover about 50 per cent of the total car sales in the country.

Other than the manufacturing facility, the Japanese automaker is also looking forward to building a suppliers park. The project will be part of the development of a host of ancillary units that will cater to the company s needs.

At present, Honda is about to reach the production capacity of its Greater Noida plant established on the outskirts of the national capital. Takedagawa said, That plant is reaching its maximum capacity. It will produce 100,000 units by January.

Officials of the Rajasthan State Industrial Development and Investment Corp. said that a host of automobile ancillary units already exists in the state. The units were said holding an investment of about Rs 7 billion.

The state-run corporation, which has been promoting investments in Rajasthan, also plans to build another auto components zone near Bhiwadi. The corporation is looking forward to attract investment of around Rs 30 to 50 billion.

In 1995, Honda set up its India operations. Since then, it has been selling the City, Civic and Accord sedans and the CR-V sport utility vehicle. Whether the automaker will release its newest Acura vehicles equipped with premium Acura cargo liner and other genuine auto parts is still unknown.

Currently, Honda is proposing a showcase of the Jazz hatchback and the new version of its top-end Accord, also known as Honda Inspire in India. Officials said that the models will be powered with a 2.4 L petrol engine and will be available with a 3.5 L variant. The company is also planning to showcase the Civic hybrid and a prototype of its Formula 1 car, which will be in preparation for its plan to host Formula 1 racing in India by 2010. Honda was able to establish 130 plants in 30 countries, with operations in 160 countries around the world.

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Cars: Honda to set Second Car Unit in Rajasthan

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