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Honda Cars India setting new production plant in Gujrat

Snapshot: The manufacturing unit would be set up at Vithalapur, around 80-km from Ahmedabad.

Honda Cars India is eyeing a third production facility in the Gujrat state of the country. As per an ET Auto report, the Japanese automaker is quite ready to sign on the dotted line for the same with Gujarat government in next three to four weeks. The manufacturing unit would be set up at Vithalapur, around 80-km from Ahmedabad. Just so you know, the company already has two production plants in Greater Noida, Uttar Pradesh and Tapukara, Rajasthan.

"The state support agreement is likely to be signed in the next 3-4 weeks with Honda Cars India," said industries commissioner Mamta Varma. It is being learnt that Honda is in final stages of paperwork and is about to get the asked share of land from the government. It is in constant touch with the Industry Extension Bureau (IndextB). This new plant of Honda falls under the 'Mega Project' category of the new Industrial Policy of the Gujrat state government led by Chief Minister, Anandiben Patel. It is further being said that the general production capacity of this new plant would be ranging between 1 lakh to 1.25 lakh units per annum. The company is said to have made an investment of around Rs 2,200 crore- Rs 2,500 crore, initially. It is likely to go as high as Rs 4,000 crore by the end.

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For those asking, this new manufacturing plant in Vithalapur is going to be Honda's second major investment in Gujrat as the 2-wheeler wing of the company - Honda Motorcycle and Scooter India (HMSI) - has already laid the stone for its scooter manufacturing facility with an investment of Rs 1,100 crore in October 2014. Auto manufacturers' association with Gujrat is not new as several biggies like Maruti Suzuki, Tata Motors and Ford India already have their production facilities in the state. Even, recently, Ford India's new plant, with an annual capacity of 2.5 lakh cars and investment of Rs. 6000 crores, was inaugurated by global CEO Mark Fields in Sanand, Gujrat. And, now Suzuki has announced a massive investment of Rs. 8000 crores in the next couple of years for setting up three new plants at Hansalpur.

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