Honda SIEL for a Rs. 300 crore powertrain facility in Tapukara

The big auto giants are thinking on the lines of setting up a full-fledged powertrain facility which they find quite necessary for making their products competitive. These auto giants include VW, Toyota, GM, Honda, etc. Honda's Indian carmaking arm is also checking the feasibility of setting up a Rs. 300 crore- powertain facility by 2011-12 in the country in its existing premises at its second plant at Tapukara in Rajasthan. Sources reveal that Honda Siel Cars India is planning to manufacture engines and transmission components at its second plant located in Rajasthan.

HSCI president and chief executive officer Takashi Nagai was quoted saying that the aim of the company is to cut costs and improve financial yields. He also said that the company is trying to identify more critical components which can be manufactured locally. He also told that they are looking at making the Indian manufacturing facility an important production base for critical components by leveraging the low-cost manufacturing here for our global operations.

Also, Jnaneswar Sen vice-president for marketing, Honda Siel Cars India (HSCI), said that they will invest Rs.250~300 crore in Tapukara plant to expand the range of power-train parts to be manufactured there. However, the exact components to be made there is under planning stage. One more senior representative of the company had earlier told that once the production capacity at Greater Noida and Tapukara is completely utilised, it will consider building an engine manufacturing plant so that the vehicle manufacturing costs can be reduced.

At present, the Indian arm of Honda Motor Company is paying a very high import duty, which ultimately increases the product's cost. HSCIL is also planning to develop low-pollution, fuel-efficient and ultra-refined diesel engines in India in the coming few years. According to industry observers, the new engine facility demonstrates Honda's commitment to India as it intends to remain a global industry leader marked by a strong presence in the high-growth markets like India. The engine plant will enable the company to capture more chances in one of the fastest-growing vehicle markets in the world.