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Honda's Small Car Production Unit Set up at Rajasthan

By Motortrend India Staff   |   28 May,2008

Premium car manufacturer Honda’s Indian subsidiary Honda Siel Cars India has announced that it is contemplating on bringing a small car to India.

The company plans to hold the production of small car at the Rajasthan plant, which is currently under construction. The establishment of the facility is likely to be complete in two years time.

The HSCI’s president and CEO, Masahiro Takedagawa confirmed that the small car from Honda stable will be manufactured at the Rajasthan plant. The facility will have a capacity to manufacture 60,000 units initially and will be upgraded to 2 lakh units later. Honda Seil Cars India is investing Rs 1000 crore on the new unit.

Honda rules the premium small car market in India which is just a little more than 20 percent. As more than 75 percent of Indian car market comprise of small cars, Honda has also decided to launch it product in this segment. The company had not decided on the pricing factor but it will be in the premium hatchback category.

The company has also upped it network to 80 dealerships from 55 last year. It also plans to add another 20 dealers to the list. With this number Honda plans to reach out to B and C level cities and expand its market share in India. Honda currently rules the premium car segment and recently launched the 8th generation Accord.

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