The Hindu : Business : Honda to invest Rs. 700 cr. in Indian subsidiary

Online edition of India's National Newspaper
Wednesday, Dec 14, 2005

Business

Business

Honda to invest Rs. 700 cr. in Indian subsidiary

Special Correspondent

To double production and launch new models

IN EXPANSION MODE: M. Takedagawa, President and CEO, Honda Siel Cars India, at the Greater Noida Plant in Uttar Pradesh on Tuesday. — Photo: Kamal Narang

NEW DELHI: Japanese auto major Honda Motor Co. Ltd. on Tuesday unfolded its plans to invest Rs. 700 crore in its Indian subsidiary, Honda Siel Cars Ltd., in the next five years.

Having ramped up its production capacity from 30,000 to 50,000 units at its at Greater NOIDA facility in Uttar Pradesh, investing Rs. 150 crore, the company has set its eyes on doubling the output to one lakh units by 2010. "We will increase the capacity to one lakh units by 2010 and will launch new models and variants in the Indian market," Honda Siel Cars India (HSCI) President and CEO Masahiro Takedagawa told media persons on the occasion of commissioning of the enhanced manufacturing facility.

The company CEO said, "work is now on for launching the Civic in India and we are hopeful of introducing it in 2006." Replying to a question whether the company is contemplating entry into the small car segment, he said it was on their radar. Earlier, formally inaugurating the enhanced production facility, Senior Samajwadi Party leader and Chairman of the Uttar Pradesh Industrial Development Board Amar Singh asked investors to follow the example of Honda and consider the State as a safe destination for setting up industrial units.

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