Honda chalks out India expansion plans
The Japanese automobile giant, Honda, has announced their expansion strategy for the coming years for their two-wheeler and four-wheeler arms. Honda Cars India Limited (HCIL) has declared that it will invest Rs 380 crore in its Tapukara plant in Alwar, Rajasthan to expand the annual production capacity from the current 1,20,000 units to 1,80,000 units. The additional capacity will be functional by 2016 which will also create close to 600 jobs at the facility. The expansion is expected to increase the total production capacity from the current 2,40,000 units to 3,00,000 units, including the 1,20,000 unit capacity of their plant in Greater Noida.
The motorcycle arm, Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) on other hand, will additionally invest approximately 580 crore rupees and build a new production line at their plant located in the Narsapura area near Bengaluru, in the state of Karnataka. HMSI’s third plant after Manesar, Haryana and Tapukara, Rajasthan, the Narsapura plant started operations in June 2013 with an annual production capacity of 18 lakh units. Honda claims the new production line will add 6,00,000 units and increase the total annual production capacity of the plant at Narsapura to 24 lakh units before the end of 2016. Combined with the additional capacity of upcoming 4th plant at Vithalapur, Gujarat which is scheduled to become operational in the first half of 2016, HMSI is aiming an overall annual production capacity to 64 lakh units by financial year 2016–17.
