Surging demand in India has prompted Honda to plan a second car plant there.
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It will spend $USS150m to US$200m on the plant in the northwestern state of Rajasthan, spokeswoman Yasuko Matsuura told the Associated Press (AP).
Honda has not yet decided on the exact site for the plant, with an initial capacity of 50,000 cars a year, but will begin building later this year, Matsuura reportedly said, adding that a site suitable for 200,000 cars a year was being sought. Output would be increased gradually.
Honda already has a 50,000-unit plant in Uttar Pradesh and there are plans to boost output to 100,000 by the end of this year.
Cars Honda builds in India include the popular Honda City sedan. The country has also become an ‘export hub’ for rival makers including Suzuki and Hyundai, which ship small cars to foreign markets including Europe.
A Honda UK spokesman told just-auto on Monday that there were no plans for cars from India to be shipped to the UK or Europe.
“If there were plans, we’d know about it,” he added.
