Honda Cars is set to expand its dealership network in India over the next few months. The plan involves increasing the dealer count to 300 by March 2016. At present, there are 240 Honda dealerships in 157 cities across India. The move comes at a time when Honda’s sales are showing consistent growth, driven by new model launches and the availability of diesel options. Honda India’s sales grew by 41 percent in FY2014-15 and with the launch of the new Jazz, the firm believes it will continue on its growth trajectory.

Aside from the expansion drive, Honda is also on track to increase production capacity in India. Earlier this year, Honda had announced plans to invest Rs 380 crore in its Tapukara plant to enhance capacity by 60,000 units by next year. Presently, annual output from Honda’s Tapukara and Noida plants is in the region of 2,40,000 units per annum.

Honda's Amaze, City and, of late, the Jazz are produced at the Tapukara plant. While the increased capacity will be spread across model lines, it is expected the City will get the largest share. The City has been a strong seller for Honda right since its launch in early 2014, and even today some variants have a three-month waiting period. The increased production is expected to reduce delivery periods.