Honda to More than Double Spending on Second Plant in India

6 May 2007

Honda Motor Co. is more than doubling its planned spending on a second car plant in India to US$483 million to increase the initial output capacity of the plant.

The company had early earmarked US$200 million for the project.

Production at the plant will begin in 2009, with an initial volume of 60,000 units, rising to 200,000 units by around 2014.  This will bring total output in India to 300,000 units.

The new plant will likely roll out subcompacts with 1.2-liter engines—smaller than Honda’s Fit, sold in Japan and elsewhere, according to The Nikkei. To date, the automaker has focused its Indian efforts on mid-size vehicles, which in India are categorized as those with engines of 1.5 liters or larger.