Honda hikes capacity; begins work on second small car

Honda Motor Company, the largest engine-maker has started working on another new global small car to suit the Indian requirements.
(See: Honda's next generation car for India)

The company has already hiked its production capacity to one-lakh units and is currently weighing options between an unnamed compact car and Jazz for introduction in India.

 "We have already started work on the new car which will be developed keeping the Indian market in mind," said Masahiro Takedagawa, president and CEO, Honda Siel Cars India (HSCI). "However, it would take several years, before the car is launched in India."

"The car that will be based on Indian conditions will have a majority of Japanese engineers working on it. In preparation for Honda's planned foray into the compact car segment, we are expanding our dealership network to 160 in 90 cities in the next three years," he added.

After the capacity expansion and the new plant in Rajasthan goes on stream, HSCI would have a total production capacity to 1,60,000 units by the end of next year.

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