The Hindu : Business : HSCI to double capacity

Online edition of India's National Newspaper
Thursday, May 18, 2006

Business

Business

HSCI to double capacity

Special Correspondent

Will consider further expansion

NEW DELHI: Honda Siel Cars India (HSCI) will double its production capacity to one lakh units annually by the end of 2007, putting its expansion plans on a fast track.

According to a company statement issued here on Wednesday, Honda Motor Company President and CEO Takeo Fukui announced at a press conference in Tokyo that the production capacity of HSCI's plant (at Greater Noida) would be increased to one lakh units, three years ahead of the original schedule.

Honda would consider further expansion to accommodate future growth in customer demand, he said. The success of City ZX, launched in November last, and the planned launch of the Civic this year had necessitated this second expansion exercise. HSCI had increased its production capacity from 30,000 units to 50,000 in December last.

AP reports from Tokyo

New plants in U.S., Japan

Honda Motor Co. will build new plants in Japan, the U.S. and Canada to boost production amid soaring demand for its cars, the company President said.

The two auto plants each in Japan and the U.S. and an engine plant in Canada are aimed at meeting an ambitious 34 per cent increase in annual sales to 4.5 million vehicles a year by 2010, Mr. Fukui said.

The automaker already has two plants in Ohio and one plant in Alabama. It also has a plant each in Canada and Mexico.

In addition to the new plants, the company would double production in Brazil to one lakh units by 2008, Mr. Fukui said.

The Japan plant would cost $640 million and would boost Honda's domestic production by two lakh units to a total 1.5 million vehicles a year.

The U.S. plant would cost $400 million and would employ 1,500 workers, Mr. Fukui said. That plant would boost the company's North American production capacity from 1.4 million to 1.6 million vehicles.

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