Honda plans an investment of Rs 300 cr in Tapukara unit

A top executive of Honda Siel Cars India said that HSCI is planning to invest Rs 300 crore in its second plant which is situated at Tapukara in Rajasthan. This investment will be done with the purpose of manufacturing engine and transmission components which will help in the cost cutting of critical car components. Takashi Nagai, HSCI president and CEO said that the aim is to cut costs and bring improvement in the financial yields. He said that the company will identify more critical parts which have to be locally manufactured. 

Until now, all these components were imported from Indonesia and Thailand. Industry experts say that compared to the imported products, the spares made in India could be cheaper by 15-20%. The new facility of the company will begin its operations early next year. It will help HSCI build volumes in the small-car segment of the country. The high price of Jazz has made Honda a niche player in the hatchback market in India.

The new and fresh investment of Rs 300 crore would give good outcome and better utilisation of HSCI’s 600-acre facility. This facility was inaugurated in September 2008 and was expected to begin its operations in the 4th quarter of the year 2009. However it remained unutilised because of the global economic slowdown which also resulted in slow car sales in India for around an year. At present, the company is using the facility for exporting crankshaft and connecting rods to Japan.

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