Honda to pump in Rs 3,000 cr; new Civic model launch tomorrow
New Delhi, July 3 (UNI) Japan-based Honda Motor Co Ltd today said it will invest Rs 3,000 crore in India in the next 10 years, besides doubling up the capacity of its manufacturing unit at Greater Noida to 1,00,000 cars per annum by the end of 2007. ''The company sees huge potential in India. Honda has invested a sum of Rs 3,000 crore in India in the past 20 years. It will invest a similar amount in the coming 10 years. It will also double its annual capacity to 1,00,000 units this year and triple it by 2010,'' Honda Motor President and CEO Takeo Fukui told newspersons here.
The company also announced plans to establish a new company Honda Motor India (Pvt) Ltd to coordinate its three businesses-- two-wheelers, automobiles and power products-- and make best strategy suited for India.
Honda's sales in the country are expected to rise by 48 per cent to 62,000 unit by the end of 2006. The company's automotive sales are expected to exceed 1,50,000 units from the current level of 50,000 units by 2010.
The company would launch its Civic model tomorrow. Honda has also begun investigation for a new model, smaller than CITY ZX model.
Mr Fukui said the company is analysing and studying the possibilities of introducing a small car in the country following Indian government's announcement of providing incentives for manufacturers of such cars.
''We feel Honda has to follow what the government is indicating at. We are exploring the possibilities.'' Mr Fukui said its Indian partner in Honda SIEL would be allowed to raise its stake to up to 5 per cent from the current level of 0.1 per cent.
UNI CS/PV PC ND1938