Honda to rev up with new Rajasthan plant and new cars based on the Brio platform

Japanese carmaker Honda Motor plans to roll out new cars based on the Brio platform from its second plant in Rajasthan next month, a move aimed at doubling production in India and winning back market share. The new assembly plant at Tapukara is expected to double Honda Cars India's installed annual capacity to 240,000 units in 2014.

"We have plans to start the second plant in the ongoing fourth quarter of this fiscal. As a company offering a wide range of products and venturing into several new segments, we plan to expand the Brio platform from the new plant with its current and new derivatives line-up likely to be rolled out," said Yoshiyuki Matsumoto, Honda Motor's managing officer and representative of development, purchasing and production for Asia & Oceania.

Besides the Brio hatchback and Amaze compact sedan, the Tapukara plant is expected to produce the Mobilio MPV, which will rival Maruti's Ertiga and Nissan's Evalia, and a compact SUV, according to a person aware of the development.

Honda plans to invest Rs 2,500 crore in the plant to build a new assembly line for cars, a diesel engine component production line and a forging unit. The facility is expected to generate 2,200 jobs when car production starts. The plant currently produces engine components and transmission parts for the domestic, Thai and European markets.

Honda has been on an aggressive drive to consolidate its operations in India after the success of its Earth Dreams diesel technology, which debuted in the Amaze sedan. Between January and December 2013, Amaze accounted for more than half of its total sales in the country at about 57,000 units.

The Tapukara plant is expected to start rolling out cars in February and will be based on the company's lean manufacturing platform strategy of sharing different models from common platform. Honda's existing plant at Greater Noida will roll out models like the City, the next generation Accord and the Brio.