Honda Cars India Limited (HCIL) today inaugurated its second plant in India at Tapukara, Rajasthan, which will double the production capacity of the Japanese auto giant in India. Honda's first ever diesel offering in India, Amaze, is the first car to roll out from the new plant. The ceremony was attended by Ms. Vasundhara Raje, CM, Rajasthan and Mr. Yasuhisa Kawamura, Minister & Deputy Chief of Mission, Embassy of Japan in India.
With the new plant in function, Honda Cars India will be able beef up the production capacity to 2,40,000 units/year from the existing 1,20,000 units/year which the company's manufacturing facility in Greater Noida in Uttar Pradesh is capable of. Honda's portfolio of cars was limited to only petrol models ranging from the Brio in the hatchback segment to the Accord in the premium sedan segment and sales were dwindling over the past couple of years owing to rising fuel prices; but the introduction of the Amaze - and its 1.5-litre diesel (i-DTEC) engine - turned the tide in favour of Honda.
The company started operating three shifts at its Greater Noida facility to bring down the waiting period on its models, but the introduction of the next-generation Honda City - which in no time became the top-selling car of its segment - has put additional pressure as demand continues to out-do the supply. Looking at the great market reception towards Maruti Suzuki Ertiga, and the forever number-crunching Toyota Innova, Honda is hopeful that its offering in the MPV segment, Mobilio, will bring in good numbers too. Honda is also going to launch the new Jazz in the premium hatchback category.
Spread over an area of 450 acres, the new plant is an integrated manufacturing unit that includes all manufacturing processes - forging, press shop, powertrain shop, welding shop, paint shop, plastic moulding, engine assembly, frame assembly and engine testing facility. Starting with Amaze sedan, this new plant will manufacture upcoming cars like Mobilio and the new Jazz. The plant was started in 2008, where the company was manufacturing engine and transmission components for the markets like India, Europe and Thailand.
Honda has invested Rs. 3,526 crores in its Tapukara plant which operates with over 3200 employees currently.
