Honda India considering Gujarat for its third manufacturing plant

Honda Cars India is soon planning to expand with its third manufacturing plant, and as per the reports generated, the company is considering Gujarat for the same. The reports further quotes that the company is showing interest in a 250 acre land parcel in Vithalapur. The site is close to Gujarat's industrial areas like Sanand and Hansalpur, the same place where Maruti Suzuki is set to come. This is further followed by two-wheeler maker Honda Motorcycle and Scooter India (HMSI), that too bought a plot to set up a facility near Ahmedabad. The 200 acres of land costs around Rs 15-20 lakh an acre to HMSI.

Recently, the company also started manufacturing passenger cars at its Tapukara plant, which is based in Rajasthan and is spread over 450 acres of land. There, Honda Cars India invested a sum of Rs. 3,526 crores to set up the Rajasthan plant. In 2008, this unit started its phase-I operations with press shop and power train shop for engine components. While, it started manufacturing vehicles this year in February. At initial stage, the unit runs at the capacity to manufacture 60,000 vehicles a year, and is still working in single shift. However, the plant is been installed with overall capacity of 1,20,000 cars per year.