Honda to resume work on its second manufacturing facility in India

author image CarTrade Editorial Team
Monday 01 April 2013, 12:43 PM

Honda Cars India Limited, a completely owned subsidiary of the Japanese auto maker Honda Motor Company, has decided to resume work on its second vehicle manufacturing facility in the country. The latest development from the company is believed to have been directed at meeting the rising demand for its products, witnessed among the domestic car buyers.

As per reports, Honda Cars India had planned to set up its second plant in the year 2008, but the project somehow got suspended due to the global recession. As per a report, the Japanese auto maker’s second manufacturing project is based in Rajasthan and is expected to start operations somewhere in the last quarter of 2014 calendar year. Further, Honda Cars India’s upcoming facility will have an estimated annual production yield of 50,000 units in its initial years, which will be upgraded with time.

At present, Honda Cars India has one passenger car manufacturing unit based in Greater Noida, Uttar Pradesh. The production facility has an annual output of 120,000 units. Therefore, when the Rajasthan-based plant starts operations, the company’s combined annual yield of passenger cars could well exceed 200,000 units in the country. Honda Cars India is already using its second facility in Rajasthan to make auto components.

Industry experts feel that increasing production could certainly help the Japanese car maker in augmenting its overall share in the Indian auto market. Further, the surplus output will also enable Honda Cars India to enhance its export operations to the Middle East, Africa and other auto markets.

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