Honda planning to double car production in India

Honda planning to double car production in India

Japanese automaker Honda has plans to double its production capacity in the country to 1,00,000 units by 2007.

Earlier the company had planned to increase the production by the end of the current decade. However, rising demands for their cars in the Indian market means that they have to take drastic actions to increase production in India.

Honda President and CEO Takeo Fukui said in his mid-year speech in Tokyo: “Honda has decided to undertake the plan to double automobile production capacity in India three years ahead of the original schedule. Annual automobile production capacity in India will reach 1,00,000 units around the end of 2007. Honda will consider further expansion to accommodate future growth in customer demand.”

The company is the majority partner in the Indian joint venture Honda Siel Cars India (HSCI) and currently has a production capacity of 50,000 units annually.

They had just last year increased the production with an added investment of Rs. 150 crores. The company added that their two-wheeler joint venture Hero Honda is also interested in hiking its production capacities for the Indian market.