)
Japanese auto major Honda Motor Company (HMC) today inaugurated its second manufacturing facility for passenger vehicles at Tapukara (Alwar, Rajasthan) doubling annual capacity to 240,000 units per annum.
The unit, developed at an investment of Rs 3,520 crore, will initially produce 60,000 cars per annum on a single-shift basis. A second shift would be commissioned based on market demand.
Hironori Kanayama, president and chief executive officer, Honda Cars India (HCI) said, “With the inauguration of this second plant, we have doubled our production capacity in India. This plant is significant as it will help us realise the target of selling 300,000 units in the country by 2016-17.”
The company would utilise the 450-acre facility to produce entry-level sedan Amaze and would later decide on producing any other models, depending on market demand. "We will produce both petrol and diesel variants of Amaze here.
The production ratio of petrol and diesel variants would depend upon the market demand," informed Kanayama, adding that the production of compact sedan would also continue at its Greater Noida facility.
In order to reduce waiting period of the Amaze, Honda Cars had commenced a third shift at its Greater Noida facility in November last year. The waiting period on the car has since come down to around three weeks.
Rajasthan Chief Minister Vasundhara Raje inaugurated the unit in Tapukara today, which currently employs around 3200 workers.
Driven by demand for the Amaze and newly launched flagship sedan City, Honda has bucked industry trend to post a growth of around 78 per cent and sold over 100,000 units till January this financial year. The company had sold 73,000 units in 2012-13.
To continue the growth momentum, the company has plans to launch two more models in the coming year. Kanayama said: "We will launch Mobilio (multi purpose vehicle) by the second quarter of next fiscal and Jazz before the end of the next financial year."
Honda Motor Company Managing Officer Yoshiyuki Matsumoto said the company has an annual target of 1.2 millio vehicles in the Asia Oceania region by March 2017. "Honda Cars India, which is part of the region, will contribute 25 per cent of the region's sales by 2017, by selling 300,000 cars per annum," he added.
The Tapukara unit, which started producing engine components in the first phase way back in 2008, will play a substantial role in HCIL’s long term growth, Matsumoto said.
He added that over the next few years the plant would become a major hub for exporting both diesel and petrol engine components and other parts to Honda facilities in Southeast Asia. "HCIL’s targeted export turnover for 2013-14 is about Rs 350 crore. This will grow significantly as HCIL expands its exports," he added.
