Honda Cars India Limited (HCIL) has announced that it will invest Rs 380 crore in its Tapukara plant in Rajasthan near Alwar district. The investment, and the resultant expansion will take the annual production capacity of the plant from the current 1,20,000 units per annum to 1,80,000 units per annum. Taking into account the other Honda plant in Greater Noida, the overall production capacity will go up to 3.0 lakh units from the current 2.4 lakh units.
Honda expects the expansion to be complete by middle of 2016. This capacity expansion will generate a fresh employment of about 600 people in Tapukara plant.
HCIL’s Tapukara unit started assembly operations in February 2014. The plant not just assembles parts, but also has various operations for forging, casting, stamping, powertrain components production, welding, painting, resin molding, engine assembly, and frame assembly as well as an engine testing facility. Like most modern plants, the Tapukara plant employs high levels of automation and latest equipment to achieve optimization from the perspective of high product quality.
With the introduction of some new products and inclusion of diesel engines in its powertrain, HCIL has grown at a rapid 44% in domestic sales during April 2014 – Feb 2015. The company sold 166,366 units against 115,913 units in the corresponding period in FY 2013 -14.
Expect the company to introduce a few more products including the new Jazz in the coming year