Honda to invest Rs. 2,500 Cr on its Tapukara unit to boost capacity

03/04/2013 - 17:14 | ,   | Nithyanandh K

Honda Cars India is all set to launch the Honda Amaze, a car which is touted to revive the Japanese car maker's fortunes in India.

Honda Amaze badge

While the bookings of the Amaze sedan, which is the first diesel Honda in India, has already opened, the official launch of the car is scheduled to take place on April 11th. Honda even has a count down timer in its official website for the launch!

The company expects that the introduction of sub-four meter diesel sedan and subsequent launches of more diesel products would bring back the demand for Honda cars. Hence, Honda has announced an investment of Rs. 2,500 Cr on adding a new assembly line, a diesel engine component production line and a forging unit to its Tapukara plant in Rajasthan.

The new assembly line would take the facility's annual production capacity to 1,20,000 units. It is to be noted that the factory already has an engine manufacturing unit and a press shop. It has already started producing critical components of the 1.5 liter i-DTEC engine like the cylinder block, cylinder head, crankshaft, connecting rod, clutch case and transmission assembly.

The fresh investment is expected to become a reality within 2014 and would give Honda Cars India a total installed annual capacity of 2,40,000 units.

The investment comes in at a right time as more diesel products are in the pipeline.

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