Honda to pour Rs. 300 crore in Tapukara Plant

By Denise Baptiste

Published: Friday, July 23, 2010, 17:03 [IST]

Honda Siel Cars India (HSCI) is likely to pour Rs. 300 crore in order to produce engines and power trains in its second plant at Tapukara of Rajasthan. This move will hopefully reduce the critical components of its cars. According to HSCI president and CEO Takashi Nagai, the aim of this investment is to cut costs and improve financial yields. So far, Honda is continuing to import the car components from Thailand and Indonesia. Industry experts say that the spared made in India could be 15-20% cheaper when compared to imported products.

Honda plans for commencing operations in early 2011 and will aid Honda to build volumes in India"s small car segment in which, Honda has only one car, the high priced Jazz.

Earlier, Honda"s second plant was inaugurated in September 2008 and was scheduled to start operations in Q4 of 2009, but unfortunately, Honda could not utilize this factory for its car production due to its slow car sales. Honda is planning to make India as a production base to capitalize on the low cost manufacturing here in the domestic market and export it for global operations.

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Article Published On: Friday, July 23, 2010, 16:19 [IST]

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