Honda announced it will make an investment of Rs.2,500 crore to upgrade its first integrated diesel engine plant in India.
The automaker plans to expand in India and improve its low ranking in this market, preparing to launch its first diesel vehicle in the country by the end of this month, the Amaze. Honda’s Tapukara plant in Rajasthan will manufacture five new models in the following three years and the company announced it will also set up a forging facility at the site.
“To ensure that Honda Cars India is battle ready for the next phase of growth, Honda has made some strategic decisions to strengthen the organizational structure of the company,” said Hironori Kanayama, president and chief executive, HCIL. “This is part of a global initiative by Honda Motor to restructure the six main business regions of the company to more quickly develop and provide affordable products in each region.”
Rajeev Wasan, manufacturing head of the Tapukara factory, said that the plant will roll out the first vehicle at the beginning of 2014. Honda has another plant in India at Greater Noida, near Delhi, which is currently running at the optimum capacity of 120,000 units annually. Honda plans to sell 6 million vehicles globally by 2017, 50% of this number to come form emerging markets in Oceania and Asia.