Honda Cars to invest Rs. 380 crore in Rajasthan plant to raise capacity.

Honda Cars India (HCIL), the country's fourth largest car maker, recently said it will invest Rs. 380 crore in its Tapukara plant in Rajasthan to increase capacity.

The fresh capital expenditure is expected to increase the annual production capacity of the plant to 180,000 units from the current 1,20,000 units. The plant is scheduled to hit the new peak capacity by mid-2016.

The expansion is also expected to generate about 600 jobs, a note from HCIL added.

The additional increase in production will increase HCIL's overall annual capacity from the current 240,000 units to 300,000 units, which includes the 120,000-unit capacity of its first plant in Greater Noida.

HCIL witnessed 44% growth in domestic sales during April 2014 – Feb 2015 with 166,366 units sold, up from 115,913 units in the corresponding period in FY2014

HCIL's second manufacturing plant, located in Tapukara started assembly operations in February 2014, with annual production capacity of 120,000 units. The plant integrates various functions including operations for forging, casting, stamping, powertrain components production, welding, painting, resin molding, engine assembly, and frame assembly as well as an engine testing facility.


BS