Honda to set up petrol engine plant in India by 2011-12

Honda Siel Cars India (HSCI) is doing the homework to set up a US $ 150 million engine plant in India to reduce the cost of its products. At present, the company imports petrol engines from its facilities in Thailand. The new powertrain facility may come up in the existing premises at its second plant at Tapukara in Rajasthan by 2011-12. Masahiro Takedagawa, CEO and MD, Honda Siel Cars India said that the company would need an investment of US$100 million for an engine plant and US$50 million for a transmission plant. At present, Honda Siel is paying a hefty duty on import of engines from Thailand. So the company is mulling to set up a complete engine and transmission manufacturing plant in India. The CEO and MD also indicated that the company is working to develop fuel-efficient diesel engines in India.