Manufacturing of cars may be commenced by Honda may at Rajasthan

Honda India did not have a smooth year in 2011; many production issues is faced by the company in 2011 because of the natural disaster, which struck Thailand. Honda has its major facility centre in Thailand; due to floods the company was unable to produce vehicles to its potential. Now Honda is falling back on right tracks, production capacity is doubled by working additional hours and is trying to narrow the production gap. This year Honda India wants to start on a positive note and is aiming at higher growth this year.

The company is planning to start production of cars from its Rajasthan unit, once the production capacity is exceeded at its Greater Noida facility centre to 120,000 units. Currently Rajasthan unit produces Honda auto components and Honda is planning to start car assembly at its Rajasthan facility, as they are anticipating high demand for their cars in the future. At the moment Honda India is planning to manufacture 60,000 vehicles at their Rajasthan facility and this figure can reach upto 2 lakh vehicles depending upon the demand of the vehicles.

A land area of 600 acres is possessed by Honda in Rajasthan and this facility can accommodate two new car manufacturing facilities. The company is lacking diesel cars admitted by Honda India in its portfolio that is affecting their sales in India as consumers now days are giving preference to diesel cars over petrol cars. Honda India is developing diesel engines for Jazz, Brio and City, but they have no plans to introduce them in 2012.Rajast