Honda to set up diesel engine plant in Rajasthan
Honda Car India, the wholly-owned subsidiary of Honda Motor Co. of Japan will set up a greenfield diesel engine factory at its second industrial location in Rajasthan that have largely remained unutilised over the past five years.
The Indian subsidiary will debut Honda's first global compact car in diesel in 2013 fired by the locally-manufactured engines.
This sub-four metre sedan, Amaze, based on its Brio hatchback model - Honda's strategic model for Asia - would have a 1.5-litre i-DTEC diesel based on its 'Earth Dreams' diesel technology.
Honda Car's senior V-P (sales & marketing) Jnaneswar Sen confirmed the corporate plans for a new diesel engine plant exclusively for the Indian market.
"We plan to launch the diesel car at a very aggressive price that would require high level of localisation in the Indian market. We have finalised plans to set up a diesel engine plant at Tapukara in Rajasthan by next year but the finer details regarding capacity and investments are yet to be worked out," he said.
The company would start assembling a 1.5-litre diesel engine by early next year that would initially debut in the Amaze sedan which would compete with Maruti top seller DZire & Tata Motors' Indigo.