Honda launches new manufacturing facility in Rajasthan

Honda Car India today inaugurated its second manufacturing facility at Alwar in Rajasthan in order to achieve a sales target of 3 lakh units in the Indian market by 2016-17,Honda eyeing to doubling the company’s production capacity across the country. company’s 3,250 crore plant has a total production capacity of 1.2 lakh cars per annum, effectively companies production capacity reached to double at 2.4 lakh cars per annum.

Honda Cars India Ltd (HCIL) president and CEO Hironori Kanayama said "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,"

The new manufacturing facility, which employs about 3,200 people, 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 new plant has been inaugurated by Rajasthan Chief Minister Vasundhara Raje, It  spreads over 450 acre of area and  initially this plant will utilize to produce Amaze sedan and later on will be decide on producing other models as per market demands.

Mr.kanayama said, we will produce both Diesel And petrol variants here but the production ratio of diesel and petrol will depend upon the market demand, Greater Noida facility will also continue the production of compact sedan.

In November last year Honda cars had started third shift at its Greater Noida plant to reduce the Amaze’s waiting period. The plant has total capacity of 1.2 lakh cars per annum.

Company had sold 73,000 units in 2012-2013, has already sold 1 lakh unit in the current fiscal (April 2013- January 2014). Honda Motor Company Managing Officer Yoshiyuki Matsumoto said the company has an annual target of 12 lakh vehicles for the Asia Oceania region by March 2017.

"Honda Cars India, which is part of the region, will contribute 25 per cent of the region's sales by 2017, by selling 3 lakh cars per annum," he added.

Tapukara plant, which started producing engine components in the first phase way back in 2008, will play a substantial role in HCIL's long term growth, Matsumoto said.

He 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.

"HCIL's targeted export turnover for 2013-14 is about Rs. 350 crore. This will grow significantly as HCIL expands its exports," he added.