Honda to double car capacity to 1 lakh units

New Delhi, May 17 | Updated: May 18 2006, 05:30am hrs
Honda Siel Cars India has advanced its capacity expansion plans in India. The company is planning to double its output to one lakh units by 2007 instead of 2010 as planned earlier. Honda Motor Co CEO Takeo Fukui announced this as part of the Japanese major's ambitious plans to increase output to 4.5 million units by 2010.

The company will spend up to Rs 400 crore on the expansion, a spokesperson said. Of this 50% would be used for actual factory expansion while the rest would be deployed for minor model changes and bringing in new cars. Honda is planning to launch the best seller Civic later this year.

Industry leaderMaruti Udyog Ltd has a capacity of 3.5 lakh units while it issetting up another plant of 2.5 lakh units. Hyundai Motors India, too, is setting up another plant of 2 lakh units to add to its 2.5 lakh capacity. Honda's capacity increase will see it become the fifth player to touch the one lakh mark. Other multinationals with sizeable capacities include GM with 80,000 units and Toyota with 60,000 units.

Honda had spent Rs 140 crore on increasing its production capacity from 30,000 units to 50,000 in December last year. The company, which makes the City and Accord models in India the CR-V being imported as a completely built unit - sells around 3,300 units a month.