One of the fastest growing passenger car manufacturer in the country, Honda Cars India has announced plans to increase their total investment to INR 7,800 crore by the end of this fiscal. This new phase of investment, which is about INR 500-600 crore worth, will see the Japanese brand increasing production capacity at their plant in Tapukara, Rajasthan from current 120,000 units to 180,000 units.
Apart from this, the company will also invest in making their rudimentary R&D facility inside Greater Noida manufacturing plant, a full fledged R&D facility. Together, both plants will create jobs for hundreds of new individuals. By the end of this fiscal, HCIL will have increased their annual production to 300,000 units and opened a fully functional R&D unit.
R&D facilities being ramped up will mean added emphasis on localization of cars and the latest in technology for production. The company also plans to increase export of components to other countries which will also include Japan.
The increase production capacity and investment will help the car manufacturer to accommodate their upcoming seven seater SUV, Honda BR-V. Based on the Honda Brio platform, BR-V made global debut at the Indonesia Motor Show a few weeks back. It will be first launched in Indonesia by February 2016.
Expected to make India debut at the 2016 Delhi Auto Expo, Honda BR-V will get both petrol and diesel engine options. These are most likely to be in the form of 1.5 liter iVTEC which generates 118 PS and 145 Nm torque; and a 1.5 liter iDTEC that generates 100 PS and 200 Nm torque. These are the same engines which are seen on board the Honda City.
Apart from this, Honda will also use the new investment to increase its dealership count in the country. As on date, the company has a total of 255 dealerships in 167 cities. They plan on taking this total to 300.
During the month of September 2015, sales of Honda Cars India increased 23.3%. Sales of the company’s Amaze compact sedan stood at 6,577 units while 5,702 units of Honda City were sold during the month.