
Honda India has announced an investment of INR3.8 billion (USD59.3 million) at its Tapukara plant in the state of Rajasthan to increase capacity. In a statement, the automaker said the investment will bolster the plant's annual production capacity from 120,000 units to 180,000 units. Additional capacity is expected to come on stream by mid-2016. The move will likely create 600 jobs and boost the automaker's annual production capacity to 300,000 units.
Significance: Additional capacity will be very useful as the automaker gears up to introduce the next-generation Jazz hatchback in June, although it has already started production of the vehicle at the Tapukara plant. Riding on the strong popularity of its Amaze and City sedans and Mobilio multi-purpose vehicle (MPV), the Japanese automaker is among the market share gainers in India. The automaker currently operates two manufacturing facilities in India – one in Greater Noida in the state of Uttar Pradesh and another in Tapukara in the state of Rajasthan. However, it is already looking for a site for a new production plant, possibly in Gujarat where Tata and Ford have their manufacturing facilities.