Honda Cars India plans new manufacturing plant in Gujarat - Report

26/12/2014 - 11:49 Honda Jazz, Honda Anjan Ravi

Capacity undecided, but investment could be INR 1,000 Cr.

Honda Cars India has approached the Gujarat government with a proposal to set up its car manufacturing plant in Vithalapur village in Ahmedabad district, a senior government official told Economic Times. The official stated that Honda’s representatives have met with the secretary of state with a formal proposal, and that talks are in the final stage.

Honda Jazz side at the 2014 Thailand International Motor Expo — Honda Cars India plans to launch the new Jazz this financial year.

This will be Honda’s second major investment in Gujarat, especially in the same Vithalapur village the first being made by Honda Motorcycle and Scooter India Private Ltd (HMSI). HMSI had announced three months back about establishing the world's largest two wheeler plant in the same village, which is only 110 kms away from the proposed car manufacturing plant.

A State Support Agreement was signed by HMSI with Gujarat government in September for setting up their two-wheeler manufacturing plant with an investment of Rs 1,100 crore. However, the car manufacturing plant will be set up with an investment of Rs 1,000 crore but capacity of the car plant is yet to be decided.

2014 Honda Mobilio front at the 2014 Thailand Motor Expo — Honda's existing car plants in Greater Noida and Rajasthan are running at high capacity utilization thanks to new models like Mobilio and City.

Also read: New Honda Jazz spotted in India ahead of launch this FY

The setting up of the manufacturing facility comes under the "Mega Project" category of the new Industrial Policy of the state government. With the help of various policies, the state has also attracted car makers like Ford, Maruti and Tata who have already invested in the state.

[Source - Economic Times]