Honda Cars India Limited (HCIL) has announced an investment plan of Rs 380 crore to expand its annual production capacity. This investment will be made in the Tapukara plant in Rajasthan and is expected to be ready by 2016.
This promised expansion will develop the plant’s capacity from 1,20,000 units/annum to 1,80,000 units/annum. With India being an ever-growing market for HCIL, this step will push the overall annual production capacity from the current 240,000 units to 300,000 units, taking into consideration the 120,000-unit potential of the company’s first plant in Greater Noida.
The additional capacity is expected to ease out production for Honda. With launches being rescheduled and delayed — such as that of the Honda Jazz — due to manufacturing issues, the carmaker aims to make the production process seamless.
This move will lighten the load on the plants and facilitate the smooth release of the other models Honda wishes to focus on.
Honda’s Tapukara plant is a fully integrated manufacturing plant with an array of functions, such as operations for forging, casting, stamping, engine assembly and testing, and a lot more.