Honda's Indian car unit Honda Siel Cars India will spend INR2.5bn (US$53.3m) on its engine and transmission facility in the western state of Rajasthan.

The manufacturing facility will be completed by the end of 2010, the firm said in a statement cited by local news agencies.

The plant will make engines and transmission components including cylinder heads and blocks at the facility, replacing parts currently imported from Honda Motor factories in Indonesia and Thailand.

Honda Siel has a factory in the northern state of Uttar Pradesh which assembles the City, Civic and Accord sedans and the Jazz hatchback. Engine components such as crankshaft and connecting rods are already made at Rajasthan.