Honda India planning third plant? To build entry level hatch below Brio, price Rs 3-4 lakh

Honda Cars India is one of the few car manufacturers in the country today who has been posting positive sales growth month after month this year. Much of their success is due to the new diesel powered Amaze sedan. But, with cut-throat competition in the segment, how long will the Amaze sustain Honda India’s positive growth?

Honda India planning third plantWell, Honda fans don’t need to worry as the company has perfectly laid out future plans that will see the car maker only rise higher in the Indian auto industry. To start with, India will see the launch of new City and Jazz diesel in 2014, which is also the year when their second plant, in Rajasthan, will start producing. Thus, taking total production capacity to 20,000 units per month.

But, this will not be enough, especially when they plan to enter the small car segment. Yes. Financial Express reveals that Honda will bring a new small hatchback to India, which will be priced in the range of Rs 3-4 lakh and slotted below their existing entry level hatch, Brio. Currently codenamed World-A, this new Honda small car will compete with the likes of Hyundai Eon, Maruti Suzuki Alto, etc. But, where will this car be built? As their plants in Rajasthan and Greater Noida will already be pre-occupied with producing Brio, Amaze, Jazz, City, Civic, CRV, and Accord.

FE says that Honda India will build a new plant, their third in India, to build this new car. Plans of the new plant were discussed at a meeting in New Delhi last month when global chairman Fumihiko Ike and global president Takanobu Ito, of Honda Motor Company were present. While several locations for the new plant are still being considered, Gujarat is a most likely locations specially considering that Sanand already has plants of auto majors such as Ford India and Tata Motors in the region. The company’s two wheeler arm Honda Motorcycle and Scooter India is also reported to build a plant in the state.