Japanese car maker Honda will set up its second car manufacturing plant in India near Jaipur at an estimated investment of Rs 1,000 crore.
The new plant at Alwar in Rajasthan is scheduled to be commissioned during October-December 2009 and would have an initial capacity of 60,000 units per annum.
"We plan to manufacture two models from the plant... One model will be a new small car and the second will be from our existing line-up," Masahiro Takadegawa, President and CEO of Honda Siel Cars India (HSCI), said in Jaipur.
He, however, did not disclose the small car model the company plans to roll out from the plant.
HSCI, a joint venture between Honda Motor of Japan and Siddharth Shriram Group firm Siel Ltd, on Thursday signed a Memorandum of Understanding with Rajasthan state government to set up its second car plant in India. The company has its existing car plant in Greater Noida, Uttar Pradesh.
The company would invest an additional Rs 1,000 crore for ramping up the capacity to over two lakh units per annum after 2009.