Honda Cars India Limited (HCIL) is eyeing a third manufacturing facility in order to maintain the demand supply ratio. And, the company is contemplating over Sanand, Gujrat for this production unit. Honda already has its two-wheeler manufacturing facility in Ahmedabad, Gujrat, which is worth around 1100 crore. The Japanese autogiant has decided a mammoth budget of Rs. 4500 Crore for the planned Sanand plant.
A senior official, on the condition of anonymity, said, "In addition to the two-wheeler plant, Honda Motors has decided to open a new car manufacturing facility in Gujarat. The company has purchased a huge chunk of private land near Sanand. The SSA will be signed after the new industrial policy is announced in the first week of October". The company and Gujrat government are due to sign a state support agreement (SSA) for the project in the run-up to Vibrant Gujarat. During the course of time, Sanand has emerged as one of the most likely place for the auto manufacturers to establish their manufacturing facilities.
Two of Honda's contemporaries, Ford and Tata have already laid out their plants in the region, with each facility worth around Rs. 4000 crore. Additionally, Maruti is also planning to set up a massive production plant in Hansalpur near Ahmedabad, Gujrat. The development comes at a time when the Maharashtra government is aggressively marketing itself as a destination for car-makers to counter the flight of investments. As known, Honda Cars recently inaugurated its second production unit in Tapukara, Rajasthan, with its first production being situated in Greater Noida.