Honda SIEL Cars India, a subsidiary of Honda Motor Co., is planning to ramp up its production capacity by 33% to 40,000 units a year.

Thanks to an unprecedented demand for the new City and the latest generation Accord, the company is facing a lot of capacity constraints.

A final decision will be made by June, Neeraj Garg, head of marketing at Honda SIEL, told just-auto. The company will invest INR1 billion (€19million) in the plant and towards increasing local parts and labour in its cars this year.

Customers currently wait up to eight weeks for certain models.

Honda makes the Jazz/Fit B-segment platform derived City and the latest generation (wide body) American Accord models (also made in Thailand as well as the US), which have attracted unprecedented demand well ahead of Indian assembly plant capacity.

The company had already doubled production capacity to 30,000 cars this year. The new City, launched in India a few months back has been selling briskly even though it has been completely restyled and is powered by an engine that develops less power than the outgoing model.

Being based on a global platform, as compared to the outgoing model’s third-world platform, has worked well for the new City and people have come to realise and appreciate the City’s interior packaging and its safety features.

Honda also imports the CR-V built-up from its Thailand plant. All three models have been well accepted well in India.

Deepesh Rathore / Tilak Swarup