Soon after it has begun production at its second manufacturing facility in the country, reports are suggesting that Honda Cars India might set up its third plant in Gujarat.
A report on Business Standard quotes a Gujarat government official who is said to be close to the development, saying that the company has shown interest in a 250 acre land parcel in Vithalapur. The town of Vithalapur is about 67 km from Sanand and 32 km from Hansalpur, where Maruti Suzuki's contentious plant is set to come up.
Interestingly, after following Honda Motorcycle and Scooters India to Tapukara in Rajasthan, Honda Cars is also following the two-wheeler manufacturer to Gujarat as HMSI announced that it would set up a facility near Ahmedabad, its fourth in the country.
Honda Cars in February began manufacturing cars at the Tapukara plant where it had been making engine and powertrain components since 2008. The plant currently manufactures the Amaze and could soon be joined by the Jazz, which is set to go into production in July.
The company has seen its sales skyrocket in 2013, going from 73,843 units in FY 2012-13 to 1,34,339 units in FY 2013-14, growing by a substantial 83.4 percent. The growth has mainly been driven by models like the Honda Amaze and Honda City. The Honda Mobilio MPV and the Honda Jazz have been confirmed for launch within the end of the current fiscal year.
[Source - Business Standard]