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Honda Siel postpones Rajasthan plant by 2yrs

Honda Siel postpones Rajasthan plant by 2yrs
PTI
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First Published: Fri, Aug 28 2009. 10 43 AM IST
Updated: Fri, Aug 28 2009. 10 43 AM IST
New Delhi: Honda Siel Cars India on Friday said it has postponed completion of its plant in Rajasthan by two years due to weak demand.
“The new plant would come up by the end of 2011 two years behind the schedule,” Honda Siel Cars India Vice-President Marketing Jnaneswar Sen told reporters on the sidelines of SIAM annual convention here.
The company is setting up its second plant in the country at Alwar, Rajasthan. It has a manufacturing facility in Greater Noida, Uttar Pradesh.
The Rajasthan plant was planned to be completed in two phases by 2009 with an investment of Rs1,000 crore. The plant has completed the first phase where body parts of sedan Honda City and hatchback Jazz are being produced, Sen said, adding that the full car roll out from the plant would be possible only when the second phase goes on stream.
It has invested Rs750 crore in the plant so far.
In order to meet the festive season demand, Honda is planning to increase the number of shifts at its Greater Noida facility. “We are operating on single shift basis, but by next month we will start double shift,” Sen said.
The company is planning increase production of Jazz by 50%. At present, it produces 5,000 Jazz cars every month.
On the back of improvement in demand, the company is expecting a double digit growth in the current fiscal.
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First Published: Fri, Aug 28 2009. 10 43 AM IST