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The Japanese automaker, Honda plans to inject in over Rs. 9,200 crores, in order to set up a third factory for launching hybrid and electric vehicles, and driving in new models and upgrades. If the plan pans out, this will make the largest investment in India by Honda.
The new investment will double the car makers financial commitment in India to over Rs 18,500 crores since it began operations in 1998. Honda Cars India president & CEO Gaku Nakanishi said, “India is one of the most critical markets for Honda globally, and we want to strengthen our operations here.”
He added, “The new investment which we plan to make over the next decade signals our commitment towards the growth potential in the Indian car market and underlying strength here.”
The Japanese car major currently has two factories in India, the first being at Greater Noida in Uttar Pradesh and the second is located in Tapukara, Rajasthan. The production capacity installed by the company stands at 2.8 lakh units annually, higher than 1.7 lakh units it sold in 2017-18.
According to Nakanishi, the company is in the also in process of acquiring 380 acres for the new factory in Gujarat. Talking about plans for electric and hybrid cars, he said Honda has started work on identifying new products and opportunities.
He ended with the remarks, “All I can say is that our electrified journey in India will begin within the next three years and this may surely include a mass-market hybrid.”
