Honda planning Made in India car: To increase capacity to 3 lakh units

Honda planning Made in India car: To increase capacity to 3 lakh units

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honda vezel india boundApart from this, Economic Times reveals that the Japanese car maker is working on a made in India car, right from scratch. Though there is not set date, as to when the car will be seen on Indian roads, Honda has stepped-up the process at their R&D center in Gurgaon, Haryara. Honda R&D India, is a completely owned subsidiary of Honda R&D, Japan. It was set-up in 1998 to carry out Local Research and Development activities related to Motorcycle & Power Products on the directions provided by Honda R & D Co. Ltd. of Japan.

The new made in India car will be made sourcing local engineering and components, as this will allow the Japanese car manufacturer to price it very aggressively. Though we are not sure where this new car will be placed, it will be safe to guess that it will be a small car, considering the rise in demand for small cars, which also eats the largest pie of the Indian auto industry. This car can be probably smaller than their current small car Brio, and can compete with the likes of Alto 800, Hyindai Eon, i10, etc once launched.

Speaking about the upcoming launches, Honda India is gearing for the launch of fourth generation Honda City sedan. It will be unveiled in New Delhi on 25th Nov, while launch will be later. The new 4th gen City sedan will arrive in showrooms by January 2014. To feature a new diesel engine, the City sedan will come with premium interiors, extra space, and improved driving pleasure and NVH levels.

In February 2014, at the Delhi Auto Expo, Honda India will showcase new City, Mobilio MPV and 2014 Jazz hatchback (probably the new Vezel compact SUV as well, which premiered at the 2013 Tokyo Motor Show earlier this week). After this, later in 2014, by August, both the Jazz and Mobilio will be launched with a choice of petrol and diesel engines. The Vezel is not confirmed for India launch as of now, but is expected to arrive on Indian roads by 2015.

Obviously, Honda India will also need to increase their production capacity, so as to match the rise in demand which will follow the launch of new cars. Their plant in Greater Noida which currently produces 120,000 units per year, will soon see added capacity. Apart from this, production at their plant in Rajasthan will too commence by 2014. This will take their total output to 300,000 units annually, and help compete with Maruti Suzuki, India’s leading car maker in the 50% of the segment.