Honda will invest INR 9.5 billionto boost its Indian car plant’s capacity.

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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.

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