India’s fourth largest car manufacturer, Honda plans to invest around Rs. 600 crores to boost its production capacity and optimise its R&D facility.
Japanese automobile giant Honda plans to invest nearly Rs. 600 crores in its two production units at Greater Noida and Tapukara. The company intends to bolster its production capacity and develop its R&D technologies. Currently the company’s total investment in the country stands at nearly about Rs. 7238 crores and the fresh infusion of capital will take it to Rs. 7800 crores.
Utilising this investment, Honda’s car production capacity will rise by a whooping 50% combining both of the units. Currently the Tapukara plnat has a manufacturing capacity of 1,20,000 units annually which will increase to 1,80,000 units whereas the Noida plant can manufacture 1,20,000 units. This will increase the combined capacity of both the plants to 3,00,000 units per annum. The Noida facility will also house a full fledged R&D facility in the plant.
With the two new units, Honda’s primary focus is on greater localisation of material, technology and production which will also enable them to export components to other countries as well, including Japan. The new R&D division is expected to be inaugurated later this month. The company also targets to take it dealership number to 300 from 255 across the country by opening new outlets.
Honda’s next anticipated launch is the BR-V which is a compact SUV and will rival against the likes of Hyundai’s Creta and Renault’s Duster. Honda has seen immense success with the launch of the new City and their diesel engine has been a hot topic because of its exceptional mileage. Still Honda ranks behind its rivals in 4th place, trailing Maruti Suzuki, Hyundai and Mahindra and the company definitely intends to push ahead with the launch of the BR-V.