Honda defers production in Rajasthan | autos | Hindustan Times
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Honda defers production in Rajasthan

Japanese auto major Honda Siel Cars India (HSCI) on Thursday said it has deferred its second car assembly plant at Tapukara in Rajasthan by two years due to sluggish demand.

autos Updated: Mar 12, 2009 21:42 IST

Japanese auto major Honda Siel Cars India (HSCI) on Thursday said it has deferred its second car assembly plant at Tapukara in Rajasthan by two years due to sluggish demand.

“The phase II of the project which involved starting the car assembly plant at Tapukara was earlier expected to start operation by end 2009 but will now be operational only by end 2011,” said Jnaneshwar Sen, vice president (marketing and sales) HSCI. “The construction of the plant is still on track but the equipment will not be moved in just yet. We have enough capacity at the Greater Noida plant and so long as it is not fully utilised, cars will not be assembled at
Rajasthan.” Honda has announced the launch of small car Jazz from the Greater Noida plant.

The company had ramped up capacity at the Greater Noida facility to 1,00,000 units last year, but sold only around 60,000 cars in 2008. “This year has begun well for us thanks to the new City,” said Masahiro Takedagawa, President and CEO, HSCI.

Though Jazz is a small car, Honda expects the City to continue to be its best selling model even after its launch. Honda is specifically developing a 1.2 litre iVTEC engine for the car to avail of the lower excise duties.