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Honda may look at Gujarat for its third plant

Honda may look at Gujarat for its third plant

Snapshot: Honda Cars India Limited may set up its third plant in Gujarat in India

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Recently, we reported about Honda Cars India Limited's (HCIL) aggressive plans to expand its dealership network across the country and now it has been reported that the company is eyeing to establish its 3rd manufacturing facility in the state of Gujarat. Apparently, Honda is considering a 250 acre plot in Vithalapur to set up its new facility which is nearby to Gujarat's major industrial cities like Sanand and Hansalpur.

Arguably, Gujarat is fast becoming a major hub for the automakers in our country, mainly due to the special excise and tax benefits in the region. The state has attracted billions of dollars investments in last few years whose few major examples are the Ford's new facility in Sanand with an investment of one billion dollars while Maruti Suzuki is injecting over Rs. 4000 crores for its India's third facility in Hansalpur. Considering the growing demands in the market, HCIL recently commenced the production of Amaze at its second manufacturing facility in Tapukara, Rajasthan.

Spread over 450 acres of land area with production capacity of 1.20 lakh cars for a year, the Rajasthan facility will also roll-out the 2014 Jazz hatchback later this year. Interestingly, Honda crossed the milestone of selling over 1 lakh cars in India in last fiscal year which is the courtesy of the diesel versions of Amaze and City sedans. The popularity of the diesel version is expected to multiply further, post the launch of 2014 Jazz hatchback and Mobilio MPV.

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