Honda Motors made an announcement today that they will keep on with their 2500 crore investment strategy which they have previously announced. Mr. Jnaneswar Sen, the SVP of Honda Cars India Limited stated that no changes have been levied in the investment scheme of the company. He further stated that the company made a 2500 crore investment in the month of April and it is going to commence according to its schedule.
At present, Honda is making an investment in three lines – the first is for the new coupe assembly line, the second investment is diesel motor facility and third investment is the development of building plant at its production unit in the Tapukara region of Rajasthan.
The diesel motor facility of the company is all-set to start while the other two investment scheme will come into action by the end of 2014. Sen also spoke on the sidelines of the yearly agreement of the SIAM.
When questioned about the reaction of the company on the price hike due to the depreciated value of rupee, and that will the fall in the rupee value affect the coupe’s price, Mr. Sen stated that Honda is still monitoring the condition and hasn’t yet decided about this.
The launches from the company like Amaze and Brio have around 90% of the localisation and the Honda City Sedan is manufactured with 70% of the Indian localisation. Thus, the depreciated value of rupee will cause no major impact on the production of the cars and hence, the company won’t enter into the league of the brands that have increased their car prices due to this reason.
The company also has aims to increase its exports in the fiscal year 2013. In the last monetary year, it made an export of around 2500 cars and spare parts of around INR 250 crore. However, in the financial year 2013, the company has strategized to make an export of 6000 coupes and spare parts of around INR 600 crore. The Indian Subsidiary of the Japanese venture, Honda aims to sell its coupes to neighbouring nations as well as South Africa.
The sudden increase in the exports of the company is due to the fall in the depreciated value of rupee. Every company wishes to grab more and more profits through exports during the crisis phase. This will surely boost the sales of Honda also. Even though the automotive industry wasn’t working very well, yet Honda made its profit in the previous month.
With an investment of 2500 crore, the company will surely make a perfect base for its other segment of cars. It will give the company a perfect and sturdy platform to release diesel coupes, new fuel efficient coupes and an all-new manufacturing facility. We will keep you updated about the progress in all the three investing lines of the company. The company hasn’t shifted an inch and is continuously working to start the project as per the declared time.
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I have been writing content for auto blogs for quite a long time now. My passion lies in this field and I love to picture cars as well.
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