Honda to start car production in Rajasthan by 2013

Car industry in Rajasthan is all set to reach new heights with Japanese automaker Honda planning to start car production at its new facility in Tapukara in the next couple of years. Honda operates in India in a joint venture with Siel Group and had lately started making engine components at the facility in Rajasthan since 2008. After production shedding due to Tsunami in the first quarter of this year, Honda plans to bring things on track and had now revived plans to step up production. Honda Siel India plans to start producing components for its upcoming car Honda Brio from the Tapukara facility in Alwar (Rajasthan) and later it will roll out cars from this unit as well.

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Honda is currently maintaining two facilities in India, one at Noida and another at Tapukara. Currently, the Noida facility produces all the Honda cars in India and the plant has an installed capacity of one lakh cars per year. It is here that Honda Jazz, Honda City, Honda Civic and Honda Accord cars are produced with an indigenization level of 77%, 76%, 74% and 28% respectively. Honda’s SUV Honda CR-V is sold as a Completely Built Unit (CBU).

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Honda cars plant at Tapukara will start functioning at its full capacity after an overall investment of Rs 1,000 crore and it will be 60,000 cars annual capacity plant. Last year, Honda has pumped in Rs 250 crore in order to expand the power train facility for its small car Honda Brio. This small car by Honda is expected to arrive next month and is expected to be priced less than Rs 5 lakh.

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Recently, Honda has launched the facelift version of its hatchback Honda Jazz and has made it much affordable now. Honda slashed over Rs 1.5 lakh on Honda Jazz. Lately the Japanese car maker also attracted good sales of its popular Honda car in India Honda City after a price cut of over Rs 60,000 on the car in June. 

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