Honda considering a new car manufacturing plant in Gujarat.

According to a fresh report from Livemint, Honda Cars India ltd. is planning to build a new manufacturing facility at Vithalapur in Gujarat. With an investment of INR 4,000 crore, the facility will be have a capacity to manufacture about 100,000-125,000 cars annually.

The manufacturer is in talks with the state government to buy 150 hectares of area in Vithalapur, Manpur for setting up its third manufacturing plant. Along this new facility, the company also plans to build a new component manufacturing plant in the state. After building this plant, Honda will become the second-largest Japanese manufacturer in the country. At the same time, it will be the second Jap firm that is under works to build a factory in the Vithalapur, Gujarat after Suzuki Motor Co.

'Honda will have made half-a-million cars in India by the beginning of next year, the second largest figure after Maruti Suzuki’s, said Amit Kaushik, principal analyst at IHS Automotive, sales forecasting and market research. 'We see Honda India as a very strong and stable contender in the future,' said Kaushik.


BS