The Japanese automaker Honda, is in plan to start a manufacturing plant for new cars in Gujarat, India. Not only, Honda but also Tata Motors, Ford India and Maruti Suzuki are busy to set up their production plant in Gujarat. Honda will set its facility in Vithalapur at a distance of 80 kms from Ahmedabad. The brand will sign the deal with Gujarat Government in the next one month.
The company will invest Rs 4,000 crores in this project. There will two stage of investment. The first phase will get an investment of INR 2,200-2,500 crores and the remaining value will be invested in the second stage. The upcoming plant will have capacity of 1 to 1.25 lakh units per annum.
The upcoming project is the company’s second investment in the area of Vithalapur after Honda Motorcycle and Scooter India (HMSI). The unit covers an area of 250 acres and will have the capacity to produce 12 lakh units per annum. The two other Honda plants in India are in Greater Noida and Tapukara. The Honda holds a capacity of 240,000 units per annum. The two other plants have occupied a capacity of 120,000 units. The Tapukara plant is in plan to increase its capacity up to 180,000 units.
The increasing capacity and the upcoming plant will make Honda’s hold to 300,000 units per annum. After the commissioning of the Gujarat plant, Honda’s capacity will increase up to 420,000 units per annum.