Honda Motor Company plans to build a second plant in India

  Honda Motor Company said on Sunday it will invest US$150 million to US$200 million to build a second plant in India.

  The comapny operates in India through a joint venture Honda Siel Cars India (HSCI), said on Sunday that it has signed a letter of intent with the State Government to this effect. The second car plant will be build in Rajasthan with an initial capacity of 50,000 units and will be used for manufacturing small cars, currently under development.

  "We will contribute to the industrial development of the state and enhance employment opportunities through several avenues," President and CEO of the Company Masahiro Takedagawa said in a statement.

  The project is claimed to be the first of its kind for Rajasthan that will lead to industrialisation with both upstream and downstream investments as well as large-scale employment generation.

  Honda is this year doubling annual capacity at its existing plant in Uttar Pradesh, near New Delhi to 100,000 units.

Source : Reuters