The source said an official announcement of Honda's investment plans in Rajasthan could be made over the next few days. "The plans have almost been finalised, and only a few minor issues remain," the source said.
Honda, which primarily manufactures mid-sized cars in India through a joint venture Honda Siel Car India (HSCI), currently has a plant at Greater Noida in Uttar Pradesh.
The company has already indicated it will go for compact cars from the new plant.