Honda to launch small car in India, eyes volume sales

19 December 2006

Mumbai: Honda Motor will launch a small car in India with the setting up of a new plant for capacity expansion in the country, Takeo Fukui, president and CEO of Honda Motor, said in his annual address in Tokyo.

"Annual automobile production capacity in India will be doubled to one lakh units by the end of 2007," he said.

Fukui said the company has targeted sales of over 1.50-lakh cars in India annually by the end of 2010. This is the first time Honda is officially speaking of volume sales in India.

Honda is currently doubling capacity at its Greater Noida plant to one lakh units at an investment of Rs400 crore. The company is also looking for a site for a greenfield plant, possibly for manufacturing the small car.

Plans are progressing as per schedule, he said, adding, the new plant is expected to cost around $200 million.

Honda has a partnership with the Shrirams in India, though it holds as much as around 99 per cent in the joint venture Honda Siel Cars India.