Honda Cars India today announced an investment of Rs 380 crore on its second plant at Tapukara in Rajasthan to expand production capacity.
The annual production capacity of the plant will be increased to 1.80 lakh units from the current 1.20 lakh units, Honda Cars India said in a statement.
"The additional capacity is scheduled to be ready by the middle of 2016. This capacity expansion will generate a fresh employment of about 600 people in Tapukara plant," it added.
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With robust response to its models, including sedans City and Amaze, the company has witnessed 44 per cent growth in domestic sales during April 2014 to February 2015 at 1,66,366 units as against 1,15,913 units in the corresponding period of FY14.
"Driven by strong sales momentum for its cars, India has emerged as a very important market for Honda and holds great potential for future growth as well," the company said.
The Tapukara plant had started assembly operations in February 2014. It integrates various functions, including operations for forging, casting, stamping, power-train components production, painting, engine assembly and frame assembly, as well as an engine testing facility.