EXCLUSIVE: INDIA: Honda to increase local plant capacity
Honda will invest INR 9.5 billionto boost its Indian car plant's capacity.
This investment at the Greater Noida unit will be made over the next five years to introduce new models and improve existing cars - the City (sedan derivative of the Jazz/Fit hatchback) and the Accord.
Honda's strategic plan for India calls for minor changes to the City model during the current financial year while the Accord will also get a minor update in the same period. The plans to launch the redesigned CR-V SUV in financial year 2007/8.
Honda SIEL is also planning to launch a new model in the next financial year. The company has not disclosed any details but a smaller car than the City cannot be ruled out.
Honda's current City, Accord and (fully imported) CR-V, all positioned at the premium end of their market segments, have been notching up healthy sales. However, Honda is yet to enter a volume segment.
Deepesh Rathore / Tilak Swarup