Japanese automobile major Honda Siel Cars India (HSCI) has short-listed Rajasthan, Maharashtra and Tamil Nadu as possible destinations for setting up second plant for making premium compact cars. The car is expected to be launched in next 2-3 years.
"HSCI will be investing Rs 2,000 crore for establishing 2.5 lakh capacity plant expected to reach its peak capacity over 7-8 years. We will initially start with 50,000 units per annum manufacturing," HSCI Vice-President and Director NK Goila said in New Delhi on Tuesday.
He said work on the second plant will commence after the proposed expansion at its existing facility in Greater Noida from 60,000 to 1 lakh units is completed by the end of the year.
HSCI President and Managing Director M Takedagawa said the compact car would not be from the existing models in Honda stable. "India will be the lead country though the compact car will also be sold in other markets. However, we will consider Indian infrastructure and localisation plans while developing it," he added.
He said HSCI would be upgrading its model range in the next 12 months as a part of the company’s commitment to provide the latest global-technology models. "HSCI will be consolidating its market position in 2007 by expanding capacity and dealer network," he stated.
Takedagawa unveiled upgraded version of Accord in three versions. The 2.4 litre variants will carry a price tag of Rs 14.92 lakh to Rs 15.92 lakh (ex-showroom), while 3 litre V6 Accord AT will cost Rs 17.32 lakh. The new versions of Accord are dearer by Rs 39,000 from the earlier products. "We hope to sell 300 units of Accord a month," he said.