Honda to Start production at second plant in India

Honda India, a subsidiary of Japan based Honda Motors is all set to start production at its second plant in India. Earlier the company had plans of establishing a plant in Rajasthan but idea was dropped due to decreasing auto sales at that time. The company will possibly start the production at its second plant once its first plant near New Delhi will reach to its maximum capacity of 100,000 units.

The Second plant of Honda will be started with a capacity of 60,000 units and for this the company has invested Rs 10 billion rupees ($ 215 millions).The Honda Siel India Ltd (HSIL) has managed to sold 49,609 units in the period of April 2009 to January 2010 which accounts for a rise of 25% in company's sales as compared to the same period of last fiscal.

Honda recently announced call back of its large number of vehicles world wide due to a faulty window switch. The call back included models like Honda Jazz and Honda City, though the second generation Honda Jazz models which was launched in India last year was not part of this call back as it is manufactured at different platform as told by the company.

Honda currently sells five of its car models in India including a compact hatchback model Honda Jazz, most popular sedan model Honda City and Honda Civic, luxury hatch Honda CR-V and Honda New Accord. Honda also has plans of launching a small car in India by next year and the concept of this car model was showcased at last month's Delhi Auto Expo. It is expected that Honda will use its second plant for the production of its new small car in India.