Honda Cars India (HCIL), Honda Motor’s automobile production and sales subsidiary in India will expand its second car production plant, the parent company in Japan announced on Friday.
Honda is also planning to expand its third motorcycle plant in India.
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The car plant, in the Tapukara Industrial Area, Alwar district, in the state of Rajasthan in the northern part of India, was opend in February 2014, with annual production capacity of 120,000 units. HCIL will spend about INR3.8bn to extend the assembly line in 2016, bosting annual capacity 60,000 units to 180,000. This willl add about 600 jobs.
Total car production capacity will be 300,000 as the first plant in a separate location can build 120,000 a year.
Honda said auto sales in India last year rose 3% to 2.55m units while the market had grown 2.5 times in a decade. India is now the world’s sixth largest market including commercial vehicles.
Honda’s auto sales rose 67% to 180,000 units last year.
“This expansion of the second plant will increase HCIL’s overall annual production capacity… and will enable HCIL to continue accommodating the automobile market in India where further growth is expected primarily with small-sized passenger cars,” the automaker said in a statement.
The newer plant in Tapukara has forging, casting, stamping, powertrain components production, welding, painting, resin moulding, engine assembly, and frame assembly as well as an engine testing facility – this is not a KD kit assembly operation by any means.
Both plants combined build the Brio, Amaze, Mobilio, City, Jazz and CR-V. Other models are imported.
