Honda Siel Cars will invest Rs 250 cr at Tapukara plant in Rajasthan

For expanding its power train facility, Honda Siel Cars India will invest Rs 250 crore in its Tapukara plant at Rajasthan. This power train facility would be basically used for its upcoming small car in India. With company's new investment of Rs 250 crore, the overall investment of the company in its Rajasthan plant will raise up to Rs 1,170 crore at the end of this year.

Takashi Nagai, HSCI President and CEO said that the expansion of the Tapukara power train facility will help the company to enhance its overall capacity in future and will also help in increasing the benefits of low-cost manufacturing available in the country. The firm had made an announcement in January this year which said that its small car would be launched in India by 2011. This new car is expected to be priced below Rs 5 lakh. The company said that the power train facility would be completed by the end of 2010. The facility will be used to manufacture engine and transmission components like cylinder heads and cylinder blocks. Earlier, they were being imported from Indonesia and Thailand.

At present, the Tapukara plant of HSCI produces crankshaft and connecting rods for the vehicles which are assembled at its Greater Noida plant. These crankshafts and rods are also used for the export purposes. According to Nagai, the company is also planning to utilise the plant for catering to domestic demand as well as exports.