Honda plans to build a new plant in India

As most of the car makers are toiling hard to cope-up with the slumped condition of the Indian auto market, at the same time they are also busy planning for their companies’ expansion in the domestic market. Honda Cars India is also no different than the other global biggies, and is reportedly contemplating to open a brand new production facility on Indian soil. If and when the Japanese major starts this new plant, it will be the second such production facility of the company.

Honda Cars India has probably taken this decision so that it can handle the increasing current demand for sedans in the domestic market. It is good to mention at this point that the construction process of the second factory of the company had already started much earlier but was stopped during the time period of the malicious global financial disaster in the year 2008.

According to the reports published in The Japan Times, the second manufacturing plant of Honda will have the capacity to produce 50,000 units per year. Till date the Japanese auto company has a single production factory on the Indian soil that is situated in the country’s northern state of Uttar Pradesh. This only Honda production plant has a capacity of producing 120,000 vehicles per year.

Honda Car is already making good use of the site of the featured factory. The construction site of the new plant is situated in the state of Rajasthan. The auto major has announced a whopping investment of Rs. 2500 crore in the new plant located at Tapukara area of Rajasthan. The chief aim of this new factory would be to manufacture the important car parts that are used in assembling the Honda cars.

Honda Motor Corporation like most other seasoned car makers is considering the Indian market as one of the most important markets in the world, where there is immense potential for positive growth for the future, as the growth factor of the Indian auto industry has remained considerable in the past years even during the terrible global financial crash.

Apart from the expansion plans in the domestic auto market of India, Honda Cars is also working full swing to spread its wings and increase its market shares in the other developing car markets of Africa and Middle East as well as several other auto markets of the globe.

In the mean time, Honda Motor is also very busy with all the pre-launch activities of its first diesel car for India, the Brio Amaze compact sedan. This new car is already creating a lot of waves as it is supposed to be the most fuel efficient car in its category in the Indian auto market. Apart from being a great fuel efficient vehicle, it is also expected to carry a very attractive price tag, as the company is saving a lot of production cost by using the Brio hatchback platform and several other parts for the new car. It seems like the present time for Honda Cars India is pretty good after all.