Honda Cars India to set-up 3rd plant with 1.25 lakh annual capacity?

Honda Motors is keen to expand its position in India. The company has successfully launched Amaze and new Honda City, both of which have pushed Honda to increase production at their manufacturing units. And now with the upcoming launch of Mobilio MPV and Jazz hatchback in the not too distant future, Honda has already decided on a new plant, as per a report by Live Mint.

Honda Cars India to set-up 3rd plantHonda Motors currently has two plants in India, one in Greater Noida, UP and another in Tapukara, Rajasthan. The third plant in India is reportedly coming up in Vithalapur-Manpur area near Mehsana. Honda officials are in talks with Govt officials in Gujarat. They are planning to purchase a 150 hectare piece of private land in the area.

This new manufacturing unit will have capacity to manufacture about 1 lakh to 1.25 lakh units per annum while a component manufacturing unit on the same plant is also proposed. Total investment is pegged at INR 4,000 crores ($664 million).

honda cars india new jobs 2014Once this third Honda plant comes into effect, Honda will be the second largest Japanese automaker in India after Maruti Suzuki, as far as production capacity is concerned. Honda Motors’ Greater Noida and Tapukara plants each have production capacities of 120,000 units per annum.

Honda Amaze is produced in Rajasthan while the upcoming Mobilio will also be produced at the same plant. Indian auto scenario has started to show some positive signs with sales improving last month. Honda Motors has been seeing increased sales ever since the launch of their iDTEC powered Amaze sedan. The company sold 1.35 lakh units in 2013-14 as against just 73,483 units in the previous year.

honda tapukara plantGujarat is becoming a favored destination of a large number of auto makers thanks to its business friendly policies and the easy procurement of land. Ford Motors has a new plant in Sanand, Ahmedabad while Maruti Suzuki is well established in the region along with Tata Motors and General Motors.

via Live Mint