Honda to set up small cars plant in Rajasthan

New Delhi, Jan 14 (UNI) Japan's Honda Siel Cars India (HSCI), today said it will set up its second car plant in India in Rajasthan, which will manufacture the company's small cars for the country with initial capacity of 50,000 units.

The company, however, did not divulge the investment details and is yet to finalise the exact location of the unit.

The company selected Rajasthan because of its proximity to its biggest markets, North and East accounting for about 45 per cent of total sales, as well as logistics advantages and managerial convenience.

Seeking an area of 500-700 acres for the plant, it is in discussion with the Rajasthan government to shortlist suitable locations. A Letter of Intent to this effect has been exchanged between HSCI and the Rajasthan government.

''We will contribute to the industrial development of the state and enhance employment opportunities through several avenues. Honda, across the globe, is committed to the preservation of ecology of the surroundings it operates in and aims to be the company that society would want to exist,'' HSCI President and CEO Masahiro Takedagawa said.

Apart from the manufacturing unit, the new plant will also have a Suppliers' Park, which will house Honda's network of ancillary units.

The project will be the first of its kind for Rajasthan and will lead to industrialisation of the state with both upstream and downstream investments as well as large-scale employment generation, he added.

UNI