With pressure to build a diesel engine mounting on the automaker, Honda Siel has begun exploring the possibility of a new car assembly plant on its 600 acre Rajasthan site, a top executive said.

According to IndiaMart.com, Jnaneswar Sen, Honda Siel’s sales and marketing chief, said: “It is a fact that not having a diesel variant is putting pressure on us.” The company has already begun work on a diesel engine for India at its Japanese R&D centre.

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Honda Siel has so far spent INR13bn (US$260.8m) at the Rajasthan facility.

The new assembly plant will have an initial annual production capacity of 60,000 units while existing capacity at Rajesthan is 200,000 units.

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