Honda to invest Rs 2,500 cr in India by 2014

In a move to enhance its manufacturing activities, including setting up a new car assembly line, Japanese auto giant Honda on Tuesday announced to invest Rs 2,500 crore in India by 2014.

As part of its plans, the wholly-owned subsidiary of the company--Honda Cars India Ltd (HCIL)-- will set up a car assembly line, a diesel engine component unit and a forging plant at its Tapukara facility in Rajasthan.

"India is a strategic market for us and it is a strategic base for our local procuring business... We will invest Rs 2,500 crore to expand production capacity of the Rajasthan plant," Honda Motor Company Managing Officer Yoshiyuki Matsumoto said.

After completion, the Tapukara plant will have an installed capacity to roll out 1.2 lakh cars every year, he added.

With setting up of the new assembly line at Tapukara, HCIL's total installed capacity will be 2.4 lakh units annually, considering the Greater Noida plant.

The new assembly line and the forging plant will generate an employment of 2,200 people by 2014, in addition of 265 people already hired for the diesel engine component unit.

Meanwhile, the company on Tuesday unveiled a new 1.5 litre diesel engine, which will be fitted first in the upcoming sedan Amaze.

Matsumoto also said the company will launch diesel variant of all its future models in India.

With PTI inputs