Honda’s small car for India to be manufactured in Rajasthan

Honda Siel, which is looking at launching its all-new small car for India by 2010, will be manufacturing the car at its upcoming facility in Rajasthan. ‘We plan to enter the small car market [and the small car] will be manufactured at our new unit coming up in Rajasthan in two years time,’ said Masahiro Takedagawa, President and CEO, Honda Siel.

Honda has a dominating presence in India in almost each and every segment, except small cars, which is still the largest segment in India. Honda will be looking at getting into the Swift/Getz/U-VA ‘bigger hatchback’ segment, which is likely to be the fastest growing car segment in India in the years to come.

Honda’s upcoming manufacturing facility in Rajasthan will be spread over 600 acres of land, and initially, it will have a manufacturing capacity of 60,000 units. Honda would have the option of ramping up the plant’s capacity to up to 200,000 units per annum, as and when needed. Honda Siel will be spending about Rs 1,000 crore on setting up this new plant.

Honda Siel’s dealership network, which was expanded from 55 to 80 dealerships last year, will see another 20 dealerships added by the end of FY 2008-09.