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This story is from November 29, 2006
Honda picks Rajasthan for setting up second car plant
Japan's Honda Motor Company seems all set to take on the might of small car giants Suzuki and Hyundai in India.
NEW DELHI: Japan's Honda Motor Company seems all set to take on the might of small car giants Suzuki and Hyundai in India. Honda has zeroed down on Rajasthan as the probable site for its second car-making facility that will house the production lines for a range of hatchback models, including the popular Jazz.
Sources close to the development told ToI that Honda has shortlisted Rajasthan as the site for the new plant and an agreement with the state government is expected to be inked early next fiscal.
"The firm had been in discussions with a host of states in India, including Maharashtra, Tamil Nadu, Andhra Pradesh and UP. But Rajasthan has emerged as the winner in this race," a source said.
Honda Siel Cars India president M Takedagawa, however, refused to comment saying discussions are still underway a final decision will be taken shortly. "The firm is still studying various options," he said.
Honda's existing plant in Uttar Pradesh has the capacity to produce 50,000 units, which will be expanded to 100,000 units by the end of 2007. "The 100,000 unit capacity will be taken up for producing Honda's City, Civic and Accord. For new car introduction, we will have to look at a second plant, and we are studying the options now," Takedagawa said at the sidelines of unveiling its all-new sports utility vehicle CR-V.
The firm is yet to finalise the investment plans for this new venture, but its global CEO Takeo Fukui had earlier
this year stated that Honda intends to pump in Rs 3,000 crore in India over the next five years to expand its footprint in the car, two-wheeler and power genset markets. Setting up a new plant alone, industry insiders said, would involve an investment of close to Rs 1,000 crore.
Takedagawa also unveiled the new CR-V, a premium SUV, which will be costlier by at least Rs 2.5 lakh than the existing CR-V. The vehicle is priced at Rs 17.70 lakh (manual transmission) and Rs 18.40 lakh (automatic transmission).
Sources close to the development told ToI that Honda has shortlisted Rajasthan as the site for the new plant and an agreement with the state government is expected to be inked early next fiscal.
This will make Honda the first car maker to set up a plant in Rajasthan.
"The firm had been in discussions with a host of states in India, including Maharashtra, Tamil Nadu, Andhra Pradesh and UP. But Rajasthan has emerged as the winner in this race," a source said.
Honda Siel Cars India president M Takedagawa, however, refused to comment saying discussions are still underway a final decision will be taken shortly. "The firm is still studying various options," he said.
However, sources pointed out that Jazz has been shortlisted as a probable candidate for Indian car bazaar. "The Jazz will be positioned as a premium small car in India. In addition, work is underway to develop an all-new compact car that will targeted at the mainstream segment. The new plant will house the production facilities for both the small cars," a source said.
Honda's existing plant in Uttar Pradesh has the capacity to produce 50,000 units, which will be expanded to 100,000 units by the end of 2007. "The 100,000 unit capacity will be taken up for producing Honda's City, Civic and Accord. For new car introduction, we will have to look at a second plant, and we are studying the options now," Takedagawa said at the sidelines of unveiling its all-new sports utility vehicle CR-V.
The firm is yet to finalise the investment plans for this new venture, but its global CEO Takeo Fukui had earlier
this year stated that Honda intends to pump in Rs 3,000 crore in India over the next five years to expand its footprint in the car, two-wheeler and power genset markets. Setting up a new plant alone, industry insiders said, would involve an investment of close to Rs 1,000 crore.
Takedagawa also unveiled the new CR-V, a premium SUV, which will be costlier by at least Rs 2.5 lakh than the existing CR-V. The vehicle is priced at Rs 17.70 lakh (manual transmission) and Rs 18.40 lakh (automatic transmission).
End of Article
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