| Monday, January 15, 2007 |
| Honda goes to Rajasthan |
Honda is to wear the Rajasthan headgear. The Japanese car maker has announced that it will set up its second car plant in Rajasthan. The plant is estimated to cost about Rs 900 crore and will boast of an an initial capacity of 50,000 units.
The company, which operates in India through a joint venture Honda Siel Cars India (HSCI), has signed a letter of intent with the Rajasthan government in this regard. The new Honda plant is to come up on an area of 500-700 acres. According to analysts, the plant is expected to see an investment of $200 million and will be used for manufacturing small cars, currently under development.
Meanwhile, Rajsathan officials said that that total investment of Honda Motors, including investment by the company vendors in the ancillary units would be around Rs 2,000 crore. Apart from the manufacturing unit, the new plant will also have a suppliers park that will house Honda`s network of ancillary units.
Honda has come to Rajsthan for the first time and is expected to play a major role in better industrialization and job generation in the state. Investments are expected to go in the region as a result of Honda’s arrival in the state.
The car major which at the moment has a manufacturing location at Greater Noida in Uttar Pradesh makes sedans like City, Civic and Accord. The UP facility is set to set to see a capacity expansion to 1,00,000 units by end of this year.Labels: Auto Industry |
| posted by a correspondent @ 7:44 AM |
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