HSCI's Rajasthan plant may start prodn in 2012

Japanese auto giant Honda today said it is likely to start car assembly at its second manufacturing facility in India from 2012.

The company, last year, had partially opened the facility at Tapukara in Rajasthan to produce few components and indefinitely put on hold manufacturing of vehicles due to slowdown in the domestic market.

The company, which is present in India through a joint venture with the Siel group, had committed an investment of Rs 1,000 crore to set up the manufacturing facility at Tapukara with an installed capacity 60,000 units per annum.

"We have not decided about the opening of the plant yet but probably after the new small car concept is launched, we can go ahead with it (starting production). It will not start before 2011 and chances are open to roll out vehicles from 2012," Honda Siel Cars India (HSCI) Director (Marketing) Tatsuya Natsume told PTI at the 10th Auto Expo here.

Earlier this week, HSCI had showcased a concept of a new small car, which is likely to hit the Indian roads in 2011.

"At present, in our Tapukara facility, we are producing body panels, crank shafts and connecting rods, which are being exported to Japan," Natsume said adding the company is supplying about 10,000 pieces of components every month to its parent.

The company has a manufacturing facility at Greater Noida with an installed capacity of one lakh units.

Asked about sales outlook for next fiscal, Natsume said: "As long as the 4 per cent excise rebate given in the stimulus package continues, the industry will continue to grow, but we should be prepared for withdrawal of this benefit as the government has other responsibilities also. Still, we should grow more than the company's sales this year."

HSCI is expecting to close this fiscal with 65,000 units from about 56,000 units in 2008-09.

He said the company would increase its dealership network to 125 by the end of 2010 from its existing 114 outlets and eventually it will be taken to 150 in three years.