Honda may commence manufacturing cars at Rajasthan

Honda India did not have a smooth year in 2011, the company faced many production issues in 2011 because of the natural disaster, which struck Thailand. Honda has its major facility centre in Thailand, because of floods the company could not produce vehicles to its potential. Now Honda is falling back on right tracks, they have doubled their production capacity by working additional hours and are trying to narrow the production gap. Honda India, wants to start this year on a positive note and is aiming at higher growth this year.

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The company is planning to start production of cars from its Rajasthan unit, once the production capacity is exceeded at its Greater Noida facility centre to 120,000 units. Presently Rajasthan unit produces Honda auto components and Honda is planning to start car assembly at its Rajasthan facility, as they are anticipating high demand for their cars in the future. At the moment Honda India is planning to manufacture 60,000 vehicles at their Rajasthan facility and this figure can reach upto 2 lakh vehicles depending upon the demand of the vehicles.

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Honda has a land area of 600 acres in Rajasthan and this facility can accommodate two new car manufacturing facilities. Honda India has admitted that the company is lacking diesel cars in its portfolio, which is affecting their sales in India as consumers now days are giving preference to diesel cars over petrol cars. Honda India is developing diesel engines for Jazz, Brio and City, but they have no plans to introduce them in 2012.

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