Honda looking at Gujarat to set up third plant

Japanese carmaker Honda is planning to expand its position in the country. This will be done not only by introducing new products into its line-up but by expanding its facilities as well. News is that Honda Motor Co. is planning to invest Rs 4,000 crore to build an automobile manufacturing plant at Vithalapur in Gujarat, its third in India. 

The new factory will have a capacity to manufacture about 100,000-125,000 cars a year, according to two state government and one industry official who wanted anonymity. They revealed that Honda is in talks to buy 150 hectares of private land in Vithalapur-Manpur area near Mehsana. This plan may also include a component manufacturing plant, according to a proposal submitted by the carmaker to the state government. 

If Honda’s plans achieve fruition then the company will become the second-largest Japanese carmaker in India by capacity after Maruti Suzuki India Ltd. But while Gujarat is being decided as their next hub, Honda has released information that production has already begun at their second plant in the country at Tapukara, Rajasthan. Like Honda’s factory at Greater Noida, Uttar Pradesh , Tapukara also has production capacity of 120,00 cars per annum. At present only the Honda Amaze is being built in Rajasthan, but soon the Mobilio will also be produced here.

It is also an interesting fact to note that Gujarat is increasingly becoming a favourite with carmakers in the country. Due to the state's business-friendly policies, including comparatively little bureaucratic red tape and ease of acquiring land many manufacturers and suppliers are looking to set shop here. 

Already auto giants Ford Motor Co has built a new plant in Sanand, near Ahmedabad. Maruti Suzuki is already positioned here, Tata Motors built one for Nano production and General Motors too have base here. With such friendly business policies it’s only a matter of time that Gujarat becomes a full-fledged industrial centre. 

Source: Livemint