Honda Unveils Plans for New Plant in Rajasthan

A Memorandum of Understanding was signed between HSCI and the Rajasthan government for setting up the second Honda car plant in India. The MoU was signed by Masahiro Takedagawa, HSCI President and CEO, and Ashok Sampatram, Principal Secretary (Industries), Rajasthan government, in the presence of Rajasthan Chief Minister, Vasundhara Raje, the state Industries Minister, Narpat Singh Rajvi and other senior government and HSCI officials.

As per the long-term plan unveiled at the ceremony, the new project would be spread across 600 acres of land and will have an initial production capacity of 60,000 units per annum.

In addition to the car manufacturing facility, which will be spread across 400 acres, the new project will also have several supplier units, spread across an area of over 150 acres. The planned capacity of the plant is likely to go up to over 200,000 units per annum, with investments up to Rs 2,000 crore ($460 million) in the future. The plant is scheduled to roll out the first car by the last quarter of the calendar year 2009.

Honda Siel Cars India’s current manufacturing unit at Greater Noida, Uttar Pradesh, has a production capacity of 50,000 units which will be expanded to 100,000 units by the end of this year.

With the new Greenfield project in Rajasthan, HSCI’s total capacity will increase to more than 150,000 units by 2010.

At the proposed plant, HSCI will deploy state-of-the-art technologies that provide the flexibility to produce models more quickly and efficiently. Major processes at the plant will include a press shop, a weld shop, die-casting shop, machine shop, paint shop and assembly operations. The new plant will be modeled on the lines of its latest global plants with great emphasis on environment protection and safety.