Honda doubles production in India, launches new manufacturing facility in Rajasthan

Feb 24 2014, 20:16 IST
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SummaryHonda Amaze is the first car to roll out from the new plant.

In a a move aimed at doubling the companyís production capacity in India, Honda Cars India Ltd (HCIL) today started the production of cars from its Tapukara Plant in Rajasthan's Alwar district. Honda Amaze is the first car to roll out from the new plant.

The Tapukara plant is the second plant of HCIL, which started its Phase I operations in September 2008.

With a cumulative investment of Rs 3,526 crores, Tapukara plant currently employs about more than 3,200 people. Spread over an area of 450 acres, the facility has a total production capacity of 1.2 lakh cars per annum. This effectively doubles the Honda Cars' total manufacturing capacity in the country to 2.4 lakh cars per annum.

"With the inauguration of this second plant, we have doubled our production capacity in India. This plant is significant as it will help us realise the target of selling 3 lakh units in the country by 2016-17," Honda Cars India Ltd (HCIL) President and CEO Hironori Kanayama told reporters here.

The new manufacturing facility will have a starting production capacity of 60,000 units in a single shift, which would be enhanced as per the market demand, he added.

The company would utilise the 450-acre plant to produce Amaze sedan and later decide on producing any other models, depending on market demand.

The production ratio of petrol and diesel variants would depend upon the market demand," said Kanayama, adding that the production of compact sedan would also continue at its Greater Noida plant.

In order to reduce Amaze's waiting period, Honda Cars had started third shift at its Greater Noida facility in November last year. The plant has a total capacity of 1.2 lakh cars per

annum.

The company, which had sold 73,000 units in 2012-13, has already sold one lakh units in the current fiscal (April 2013- January 2014).

Kanayama added that over the next few years the plant would become a major hub for exporting both diesel and petrol engine components and other parts to Honda plants in Southeast Asia.

"HCILís targeted export turnover for 2013-14 is about Rs 350 crore. This will grow significantly as HCIL expands its exports," he added. (With agency inputs)

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