South Asian Business news and information

The world famous automobile company, Honda, is looking forward to produce more small cars in India. Honda company’s CEO, Takeo Fukui, announced this plan in his annual speech. I am quoting from the report published in The Economic Times:

 Honda’s small car plans have been doing the rounds for a while. Now the Japanese major’s global top brass have officially announced its entry into the biggest volume segment of the Indian market. Honda Motor Company on Tuesday announced it would introduce a “small size” vehicle in India and put up a second plant to crank out more than 150,000 four-wheelers in India by 2010.

Although there are no confirmations available from the company, auto industry sources say the small car being considered for India is the next-generation Jazz. If it’s chosen, the Jazz will fight it out in the local market alongside current players Suzuki Swift, Hyundai Getz, Chevy U-VA and future prospects Fiat Grande Punto and Volkswagen Polo.

In order to meet the growing needs of the Indian market, Honda’s Indian plant is now increasing its production capacity. The company has spend Rs. 400 crore to double its present Noida plant’s production capacity. The company is also investing another $200 million to build a second plant in India.

Related article:

Economic Times

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