Honda Cars India plans new manufacturing plant in Gujarat – Report
Posted on: Dec 26, 2014 - 11:49am IST
Capacity undecided, but investment could be INR 1,000 Cr.
Honda Cars India has approached the Gujarat government with a proposal to set up its car manufacturing plant in Vithalapur village in Ahmedabad district, a senior government official told Economic Times. The official stated that Honda’s representatives have met with the secretary of state with a formal proposal, and that talks are in the final stage.
This will be Honda’s second major investment in Gujarat, especially in the same Vithalapur village the first being made by Honda Motorcycle and Scooter India Private Ltd (HMSI). HMSI had announced three months back about establishing the world’s largest two wheeler plant in the same village, which is only 110 kms away from the proposed car manufacturing plant.
A State Support Agreement was signed by HMSI with Gujarat government in September for setting up their two-wheeler manufacturing plant with an investment of Rs 1,100 crore. However, the car manufacturing plant will be set up with an investment of Rs 1,000 crore but capacity of the car plant is yet to be decided.
The setting up of the manufacturing facility comes under the “Mega Project” category of the new Industrial Policy of the state government. With the help of various policies, the state has also attracted car makers like Ford, Maruti and Tata who have already invested in the state.
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[Source – Economic Times]