Honda Motors to set up second car plant in Rajasthan

15 Jan 2007

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New Delhi: Honda Motor Co has zeroed in on Rajasthan to set up its second plant in India and has signed a letter of intent with the state government to this effect. The new plant, which will have an initial capacity of 50,000 units, will be set up at an estimated cost of about Rs900 crore.

The company, which operates in India through a joint venture Honda Siel Cars India (HSCI), said the new plant will come up in an area of 500-700 acres and will see an investment of $200 million from the company. The facility would be used for manufacturing small cars, currently under development.

State officials, however, maintained that total investment of Honda Motors, including investment by the company vendors in the ancillary units would be around Rs2,000 crore. Apart from the manufacturing unit, the new plant will also have a suppliers'' park, which will house Honda''s network of ancillary units.

The project is claimed to be the first of its kind for Rajasthan that will lead to industrialisation with both upstream and downstream investments, as well as large-scale employment generation.

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