The Hindu : Business : Honda Siel to invest Rs. 150 crores

Online edition of India's National Newspaper
Wednesday, Nov 10, 2004

Business

Business

Honda Siel to invest Rs. 150 crores

By Our Special Correspondent

NEW DELHI, NOV. 9 . Honda Siel Cars India is going ahead with its plan to invest Rs. 150 crores to expand its capacity to 50,000 units annually to achieve over 50 per cent growth in turnover at Rs. 2,500 crores this fiscal.

"We are investing Rs. 150 crores to increase capacity to 50,000 units a year by the end of calendar 2005 from 30,000 units now,'' the HSCIL President and CEO, H. Yamada, said after launching a variant of sports utility vehicle `CR-V'.

The `CR-V' with manual transmission has been priced at Rs. 14.57 lakhs (ex-showroom, Delhi) while the automatic version would cost Rs. 15.57 lakhs.

According to the HSCIL Vice-President, N. K. Goila, the company aimed 56.25 per cent rise in topline during 2004-05 over Rs. 1,600 crores last fiscal. Having wiped out the accumulated losses of Rs. 150 crores last year, the company is also targeting Rs. 100 crore net profit during 2004-05 against Rs. 75 crore in 2003-04.

HSCIL was also studying various model options to launch in India as part of a strategy to become market leader in the premium car category, Mr. Yamada said adding that company planned to sell 37,000 units this financial year.

The company aimed to sell 32,200 units of the `City' sedan, 3,000 units of the luxury sedan `Accord' and 1,800 units of the `CR-V', he said.

When asked how would the company sell 37,000 units this year while the capacity expansion would take place by the end of 2005, the HSCIL Deputy General Manager (Marketing), Rajive Saharia, said "this will be achieved by working with higher efficiency.''

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