Honda to set up 2nd unit, launch small car in India

New Delhi, Dec 19: Japan's Honda Motor Company today said it will launch a small-size car in India and set up a second automobile plant with an aim to produce and sell more than 1,50,000 units of automobiles in the country by 2010.

The company is also in the process of doubling its annual automobile production capacity in India to 1,00,000 units by the end of 2007.

''The expansion at the Greater Noida plant of Honda Siel Cars India, the company's Indian subsidiary, has begun and is progressing as per schedule,'' Honda Motor Company President and Chief Executive Officer (CEO) Takeo Fukui said.

The company expects to close at 3,20,000 unit sales in Asia region, a growth of four per cent from the comparitive figures in the corresponding period. The target sales for 2007 in the region that excludes Japan and China operations, are 3,60,000 units, up 13 per cent from 2006.

Honda had also expanded motorcycle production capacity in India, the Philippines and Pakistan in 2006, and also announced further capacity expansion in India and Vietnam in 2007.

In his annual speech Mr Fukui said Honda would further accelerate its effort to strengthen the core characteristics that make it unique in each business area in order to continue creating new value and providing products and services which are beyond customers' expectations.

The company expects to achieve all-time record sales globally in all three product areas. It expects the motorcycle and automobile sales for this year at 12.7 million units (up 3 per cent from 2005) and 3.55 million units (up 5 per cent from 2005) respectively.

For its power products business, it estimates 6.4 million unit sales (up 15 per cent from 2005).

The company President also announced a series of initiatives and expansion plans for Honda operations other countries including Japan.

UNI