Honda is not able to start Rajasthan operations this year

Honda Siel Cars India (HSCI) has confirmed that it would not be able to start its Rajasthan operations this year due to global slowdown. The company said that the Rajasthan assembly facility would be completed after positive improvements in the Indian car market. Tatsuya Natsume, director, marketing, HSCI, said that the company targeted the Tapukara plant to start working by this year, but it didn't work as planned. So the investment in the plant is put on hold till the market show some improve signs. The facility's total cost is estimated at Rs 1,000 crore. Further investments in the facility slowed down since December last year. The company's present decision indicates that its next small car's launch is also uncertain.“We were adversely affected by the rise in yen and the dollar, as we import parts from Japan and the US,” he said.