Honda India revives plan for second unit

Honda India revives plan for second unit

Mumbai: Japan’s Honda Motor Co’s Indian car unit has revived plans for production at its second plant in India, a senior company official said.

Honda had deferred plans for its new plant in Rajasthan, citing depressed auto demand.

The company may decide to start production at the second plant once it reaches full capacity utilisation of 100,000 units at its first plant near New Delhi, Jnaneswar Sen, Honda Siel Cars India’s marketing head, said.

The second plant, would have an initial annual capacity of 60,000 units with an investment of Rs10 billion ($215 million).

In the first ten months of 2009/10 Honda Siel sold 49,609 units, a rise of about a fourth from year ago.