May 8, 2007

Honda unveils plans for new manufacturing facility in India


2008 Porsche 911 Turbo Cabriolet
2008 Porsche 911 Turbo Cabriolet. Click image to enlarge

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Jaipur, India – Honda Siel Cars India Ltd. (HSCI) has unveiled a detailed, long-term plan for a new manufacturing facility in Rajasthan. The facility, to be set up in the Alwar district, will involve an initial investment of over US$230 million. It will be Honda’s second car plant in India.

The new project will be spread across 600 acres of land and will have an initial production capacity of 60,000 units per year. In addition to the car manufacturing facility, which will occupy 400 acres, the project will also contain several supplier units. The plant’s planned annual capacity is likely to exceed 200,000 units, with investments of up to US$460 million. The first car is expected to roll off the production line by the last quarter of 2009.

HSCI’s current manufacturing facility at Greater Noida, Uttar Pradesh, has a production capacity of 50,000 units, which will be expanded to 100,000 units by the end of this year.

Major processes at the proposed plant will include a press shop, weld shop, die-casting shop, machine shop, paint shop and assembly operations. The plant will operate under ISO 9001 standards for quality management, and ISO 14001 for environmental management. The plant’s placement in North India was chosen as the area comprises 40 per cent of Honda’s total sales.

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