Honda to continue with India investment

Japanese automobile major Honda Wednesday said it will go ahead with its Rs.2,500 crore India investment plan despite the current economic situation.

The company also said it has not decided on raising the prices of its vehicles in view of the rupee depreciation.

"We haven't yet taken any decision on it (prices). However, we are keeping a close watch on the rupee situation as imported parts that we use have become costlier," Jnaneswar Sen, senior vice president, sales and marketing, Honda Cars India, told IANS.

The partially convertible Indian rupee has depreciated by close to 25 percent from the start of the fiscal and touched the record low of Rs.68.80 on Aug 28, 2013.

According to Sen, who spoke on the sidelines of Society of Indian Automobile Manufacturers (SIAM) annual convention, the company has achieved significant localisation in some of its leading brands like Brio, Amaze and City.

"We have achieved 90 percent of localisation in Brio and Amaze and 70 percent in City," Sen said.

The company said it would continue to invest in India.

"We have already announced our investment plans worth Rs.2,500 crore and we are going ahead with it. In the past five months April-August, we have grown by around 65 percent," Sen added.

The company's investment plans include a new diesel engine plant, forging facility and assembly line at Tapukara in Rajasthan.

The company's sales jumped by 63 percent last month on the back of healthy response for its entry-level sedan Amaze.