Honda to invest Rs 2,500 crore in Rajasthan Plant

In a bid to make inroads into the Indian market, Japanese car maker, Honda Cars India Limited (HCIL) on Tuesday announced an investment of Rs 2,500 crore at its Tapukara plant in Rajasthan and five new models for the Indian market in the next three years. 

The company is setting up a new assembly line for car with an installed annual capacity of 1.2 lakh units, a new diesel engine component production line and a forging plant at Tapukara. The new plant is expected to kick-start operation in 2014, and with this the total installed production capacity of HCIL will be doubled to 240,000 units per annum in 2014. 

Lining up five new models which includes compact sedan Amaze, powered by a new 1.5 litre diesel engine, Honda Cars India will be represented in 50% of the Indian passenger vehicle categories from 10% currently. Hironori Kanayama, MD, Honda Cars India Ltd said, "With the introduction of the Amaze, HCIL will launch a new offensive in the market to take advantage of our full potential - with both petrol and diesel fuel options. Further, we will introduce a diesel option for our promising large volume models and all new models." 

The 1.5 litre diesel engine is likely to power the next generation Jazz and City along with compact utility vehicle, that are in the works. Honda Motor Company, as part of its global restructuring, appointed Yoshiyuki Matsumoto as Managing officer 'representative of development, purchasing and production in Asia & Oceania region' based out of India to control the entire region.

Also read: Honda Amaze : Road Test