Honda In Dilemma To Start Production

By Denise Baptiste

Published: Monday, August 30, 2010, 10:29 [IST]

Honda Motor Corporation has not taken any decision so far to start the assembly operation at its second plant in Rajasthan. If the second plant functions in full swing, the company can add 60,000 units with an investment of 10 billion rupees. Earlier during Feb 2010, Honda's Marketing Head Jnaneswar Sen said that Honda would commence the operations in its second plant when the production reached full swing in the first plant.

According to records from SIAM, Honda's production in the Jan-Apr 2010 period fell by 15 percent when compared to an year ago period.

In July, Honda announced an investment of .5 million to expand its power train facility at the Rajasthan plant, to be used for its small car. Honda is planning to launch a small car in 2011 and this car's production will commence in Honda's first factory.

Honda hasn't been lucky in selling cars. In fact, its car sales dropped by 5 percent during the April-July period while its rivals are enjoying a great boost in sales figures. Indian auto sector have grown 35 percent in sales volumes with more than 5 lakh cars sold in just 4 months (Jan -Apr) of this year.

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Article Published On: Monday, August 30, 2010, 10:20 [IST]

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