Honda’s Rajasthan plant to start production by September

New Delhi: Honda Siel Cars India said that production of its engine components would begin by September at its second plant in Rajasthan. “We will begin production of body parts, stamping at our new plant in Rajasthan,” said Mr Masahiro Takedagawa, President and CEO, Honda Siel Cars India, at the launch of the company’s eighth generation Accord.

The start of the engine parts production would mean increased localisation in Honda cars and reduced costs as currently these components are imported from Thailand. At present the localisation in City is 90 per cent, Civic 68 per cent and Accord 35 per cent.

Honda launched its flagship model, Accord at a price difference of slightly over Rs 1 lakh compared with its existing model. Honda is launching the new Accord eight months after its global launch. Accord, with its 2.4-litre i-VTEC engine, is loaded with 6 air bags and would be available in three types, in both automatic and manual transmission. The price of the Accord ranges from Rs 16.49 lakh for the base model to Rs 18.14 lakh (ex-showroom Delhi) for the top-end automatic transmission model.

“We are fairly confident that at this price and with this product, we will remain market leaders,” said Mr Jnaneswar Sen, the company’s General Manager, Sales and Marketing.

Honda would also launch Civic Hybrid next month. Despite new launches, Honda said that high interest rates and factors like inflation would make the current fiscal’s growth at par with last year’s. “If interest rate and inflation stop moving upwards, then the market will be slightly better,” Mr Takedagawa said .

On the outlook for the current fiscal, he said that last year the company fell short of its target of 70,000 units due to new investments, expansion at the existing plant at Greater Noida and multiple plant shut down due to this expansion. But this year, the company hopes to sell more than last year with its increased capacity, he added.