Honda's cars and two-wheelers subsidiaries in India will invest a total of Rs965 crore to increase their respective production capacities at two existing plants in India by 2016. The company's wholly-owned arm, Honda Cars India ltd (HCIl) will invest Rs 380 crore in its second plant at Tapukara in Rajasthan to expand production capacity to 1.80 lakh units from the current 1.20 lakh units.
At the same time, Honda's 100 per cent subsidiary Honda Motorcycle & Scooter India (HMSI) will also invest Rs585 crore to hike production capacity at its third plant at Narsapura in Karnataka by setting up a new line to take overall annual capacity of the facility to 24 lakh units. In separate statements, HCIl and HMSI said their respective capacity expansions would be completed by mid and before-end of 2016, respectively.HCIl said: "The additional capacity is scheduled to be ready by middle of 2016. This capacity expansion will generate a fresh employment of about 600 people in Tapukara plant." The expansion of the second plant will increase HCIl's overall annual production capacity from the current 2.40 lakh units to 3 lakh units, including the 1.20 lakh units capacity of the first plant in Greater Noida, it added.