The Hindu Business Line : Honda Motors second car plant to come up in Rajasthan

Honda Motor Co has zeroed in on Rajasthan to set up its second plant in India. The new plant, which will have an initial capacity of 50,000 units, will be set up at an estimated cost of about Rs 900 crore.

The company, which operates in India through a joint venture Honda Siel Cars India (HSCI), said on Sunday that it has signed a letter of intent with the State Government to this effect. The company's new plant, to come up in an area of 500-700 acres, is expected to see an investment of $200 million from the company and will be used for manufacturing small cars, currently under development.

Total investment

State officials, however, maintained that total investment of Honda Motors, including investment by the company vendors in the ancillary units would be around Rs 2,000 crore. Apart from the manufacturing unit, the new plant will also have a suppliers' park, which will house Honda's network of ancillary units.

"We will contribute to the industrial development of the State and enhance employment opportunities through several avenues,'' the President and CEO of HSCI, Mr Masahiro Takedagawa, said in a statement. The project is claimed to be the first of its kind for Rajasthan that will lead to industrialisation with both upstream and downstream investments, as well as large-scale employment generation.

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