Honda Cars to invest Rs 380 crore in Rajasthan plant to raise capacity

The move is is expected to increase the annual production capacity of the plant to 180,000 units from the current 1,20,000 units

Honda Car India Ltd (HCIL), the country's fourth-largest car maker, on Friday announced an investment of Rs 380 crore in its Tapukara plant in Rajasthan to increase capacity.

By this, the annual production capacity of the plant will be raised to 180,000 units from 1,20,000 units. The enhanced capacity will be in place by mid-2016, the firm said.

This capacity expansion will generate a fresh employment of about 600 people in Tapukara plant, a note from HCIL added.

This expansion of the 2nd plant will increase HCIL’s overall annual production capacity from the current 240,000 units to 300,000 units including the 120,000-unit capacity of the 1st plant in Greater Noida.

HCIL witnessed 44 per cent growth in its domestic sales during April 2014 – Feb 2015 with 166,366 units as against 115,913 units in the corresponding period in FY 2013 -14

HCIL’s second manufacturing plant, located in Tapukara started assembly operations in February 2014, with annual production capacity of 120,000 units. The plant integrates various functions including operations for forging, casting, stamping, powertrain components production, welding, painting, resin molding, engine assembly, and frame assembly as well as an engine testing facility.