The car section of Japanese Honda, in India, Honda Siel Cars India is expanding its activities at its Tapukara plant in Rajastan with an investment of Rs300 crore. With this investment the second plant will be erected in the 600 acre land, procured for producing cars during the last quarter of 2009. But Honda had to fall victim to the global recession and had to face slow moving of its products. The plant is under care for the export of crankshaft and connecting rods to its apex body in Japan. This is for enhancing the production wing of engine and transmission components which will reflect the reduction of the cost of cars, said the company’s CEO and President.
Of late, the company has been importing the components from Indonesia and Thailand and the components manufactured locally would derive a reduction of 15-20% cost of the net product. He said that the company’s top priority is to endure the leverage of cost factor by manufacturing components in India. The company plans to initiate the production by next year and thereby to boost the sale of its cars in India and overseas market. Honda’s presence in the Indian car market is colored with its popular brand Jazz.