Honda Cars India begins Tapukara production, HCIL target export turnover for 2013-14 is about Rs 350 crore

Tapukara, Feb 24, 2014: Honda Cars India Limited (HCIL), leading manufacturer of premium cars in India, today started the production of cars from its Tapukara Plant in Distt. Alwar, Rajasthan. Honda Amaze is the first car to roll out from the new plant.

The grand ceremony was attended by Ms. Vasundhara Raje, Hon’ble Chief Minister, Government of Rajasthan and Mr. Yasuhisa Kawamura, Minister & Deputy Chief of Mission, Embassy of Japan in India. The event also witnessed the attendance of Senior officials from Govt. of Rajasthan, Honda senior management and their business partners.

Honda India Tapukara plantHCIL plant in Tapukara is the first car manufacturing plant in the state of Rajasthan. Spread over an area of 450 acres, the facility is an integrated manufacturing unit including all functions of Forging, Press Shop, Powertrain shop, Weld shop, Paint shop, Plastic Moulding, Engine assembly, Frame assembly and Engine Testing facility. This plant is the culmination of the best manufacturing know-how and practices gathered from Honda’s global operations. It employs optimum automation, latest equipment and best layout for achieving high quality, best ergonomics, improved operational efficiency and safety. The plant is highly focused on conservation of the environment and efficient use of energy & other natural resources.

Inauguration of Car Manufacturing Plant, Tapukara, February 24, 2014
Speech of Mr. Yoshiyuki Matsumoto, Managing Officer, Honda Motor Co. Ltd., Japan

Honorable Chief Minister, Mrs Vasundhara Raje, His Excellency, Minister & Deputy Chief of Mission, Embassy of Japan, Mr. Yasuhisa Kawamura, esteemed dignitaries of the Rajasthan government, distinguished guests, ladies and gentlemen.

It is a very significant day for Honda today, as we prepare to start production of cars from our plant in Tapukara, Rajasthan. This will not only strengthen Honda’s presence in the country, but also usher progress and prosperity for the people of Rajasthan.

I would like to take this opportunity to extend my heartfelt thanks to the government of Rajasthan, and the honorable chief minister in particular, for helping us at every step of this project. The spirit of cooperation shown by the Rajasthan government has created a very conducive environment for companies to invest in the state.

It is the pro-active attitude of the Rajasthan government and Tapukara Industrial Area authorities that encouraged Honda Motor Company to make big investments in this area.

The Tapukara Industrial Area is of strategic importance to us and so far, Honda has invested about Rs 3,500 crore in this car manufacturing facility. Additionally, we have invested about Rs 1,200 crore in Honda Motorcycle and Scooter India’s the manufacturing plant, adjacent to this facility. And the combined investment of all Honda group companies and suppliers in this region amounts to more than Rs 6,000 crore, generating employment for more than 10,500 people. With this kind of investment, I am happy to note that Honda has been able to make significant contribution to the development of this region and its people.

On a cumulative basis, just HCIL and HMSI, two of Honda’s five companies in India, have invested a total of Rs 11,600 crore in India over the past 16 years. This investment not only demonstrates Honda’s commitment to the Indian market, it is also a promise to our customers that we are gearing up to meet your needs and aspirations. It is also testimony to our confidence in the potential of the Indian market.

Ladies and gentlemen, Honda Motor Company has an annual sales target of 12 lakh vehicles for the Asia Oceania region by March 2017. Honda Cars India, which is part of this region, will contribute 25% of the region’s sales by 2017 – by selling 300,000 units per annum. And I am happy to say that the Tapukara plant will play a substantial role in HCIL long-term growth.

This plant is the culmination of the best manufacturing practices gathered from Honda’s global operations, with optimum automation, latest equipment and best layout.

It is will meet not only our current, but future growth requirements too.

Over the next few years, the Tapukara plant will become a major hub for exporting both diesel and petrol engine components and other automobile parts to Honda plants in Southeast Asia region. HCIL’s targeted export turnover for 2013-14 is about Rs 350 crore. This will grow significantly as HCIL expands its exports.

As we expand our business in India and plan for future growth, I seek the continued support and cooperation of the Rajasthan government, our neighboring communities and all our stakeholders.

I wish you all the best for a prosperous future.

Dhanyavaad.

Car Manufacturing Plant Inauguration, Tapukara, February 24, 2014

Speech of Mr. Hironori Kanayama, President & CEO, Honda Cars India Ltd.

Honorable Chief Minister, Mrs Vasundhara Raje, His Excellency, the Minister & Deputy Chief of Mission, Embassy of Japan, Mr. Yasuhisa Kawamura, Additional Chief Secretary, Infra, Mr. C.S. Rajan, Principal Secretary, Industries, Rajasthan Govt, Mrs Veenu Gupta, MLA, Mr. Maman Yadav, Honda Motor Company Managing Officer, Mr Yushiyuki Matsumoto, distinguished guests, ladies and gentlemen.

It gives me great pleasure to welcome you to this landmark occasion for Honda Cars India – the inauguration of our second manufacturing facility, Rajasthan’s first car plant and the roll out of the first car.

We began our journey in Rajasthan in July 2007, when we laid the foundation stone for this plant. The first phase of work at the plant was completed in September 2008, with the setting up of Honda’s first press shop and power train unit in the country at this plant. Madame Chief Minister, I am pleased to note that it was our privilege to have you as our esteemed guest at the first phase inauguration too.

And today, we are all set to roll out the first Honda car, the Amaze, from this plant. I would like to take this opportunity to thank the Rajasthan government, local authorities and the people of this area for their support.

Above all, Madame Chief Minister, it is your vision and pro-active support that is responsible for the successful completion of this plant. It has been your long-standing dream to have a car plant in Rajasthan and it is, therefore, befitting that the plant will be inaugurated by you today.

The Tapukara plant is a fully integrated manufacturing facility, which has all the operations required for full car production, such as the press shop, power train shop, weld shop, paint shop, engine assembly and car assembly. It also has a Forging plant, which is a strategic manufacturing function, found in only four Honda plants across the world. It is at this plant that Honda first began manufacturing diesel engine parts, which helped us launch Honda’s first diesel engine in the country.

The plant has an installed capacity of producing 120,000 cars in a year and currently provides employment to about 3,200 associates. A total investment of about Rs 3,500 crore has been made in this plant in a phased manner since 2007.

With the start of car production from this plant, we plan to participate in the growth and prosperity of Rajasthan and add our own contribution to the development of this region. It is also a testimony to Honda’s commitment to the Indian market.

Honda is a much-loved, premium brand, which has delighted more than 6.8 lakh customers with its high-quality cars over the past 16 years.

Ladies and gentlemen, the Indian automobile industry is facing a difficult business environment, with passenger cars de-growing by 5% in the 10 months of the current financial year. However, Honda has posted excellent growth for the past two years. With tremendous customer response to the Honda Amaze and the new City, HCIL has posted a growth of 78% in the current financial year. We are confident we will keep up this momentum in the forthcoming fiscal year too, as we plan to launch two new models.

Our focus on quality has ensured that all our volume models – the Honda Brio, Amaze and the City – are ranked No. 1 in quality by the renowned customer research agency, JD Power & Associates. This shows our commitment to our customer and our customers’ faith in Honda.

Honda has always been a good corporate citizen globally and believes in integrating with and contributing to the societies it operates in. We are also committed to the industrial development of the state and enhancing employment capabilities of the people. Towards this end, the Honda Vocational Training Institute, which was set up in 2011, has been successfully boosting the skills students of this area. The institute has provided technical training related to automobile technology to more than 2,000 trainees so far.

As Honda, we promise to work together with the government of Rajasthan for mutual growth and development, so that we can usher in a bright future for our children. Wish you all the best in your endeavors.

Dhanyavaad