Honda keen to build new unit in Gujarat

Honda Cars India has recorded amazing profits for the past eleven months; the main trigger for continuous profits is the launch of Amaze in April 2013. The company has lately launched the new City and with Amaze has churned highest profits in 2014 March.

Honda cars are in huge demand, the buying power for Amaze, City and other pieces are so enormous that the company has recently built another unit in Tapukara to cater to the overflowing demand. Honda is now looking at Gujarat to establish a new unit. Sources have stated that Honda is looking to built a 250 acre unit in a place called Vithalapur. Honda has not yet disclosed detailed information about its new proposal.

A top official from Honda cars stated, Vithalapur is close to Hansalpur which is the production base of one of the units of Maruti Suzuki. The company has bought a land in Vithalapur to aid in future expansion. The acreage is about 110km, from the city of Ahmedabad which resides between Mehsana and Sanand towns. Honda two wheeler firm in India called Honda Motorcycle and Scooter India Limited (HMSI) acquired a 200 acre plot which cost about Rs 15 to 20 lakhs per acre. HMSI has agreed to support the agreement of state government. The government has not yet given a response because of the forthcoming Lok Sabha elections.

Honda Cars India has recently starting building passenger vehicles at its Tapukara unit in Alwar Rajasthan. The acreage of the land is 450 acres, the company has made a huge investment in the region which is about Rs 3,526 crores. The first phase operation was commenced in 2008, with just power train shop and press shop to source engine components. In 2014 Feb, the unit started its vehicle production procedures, the initial manufacturing capacity was 60,000 units a year, in single shift, and now the production capacity has hit enormous figures of 120,000 pieces on a yearly basis.

As mentioned earlier the demand for Honda cars is sky high, the initial trigger was launch of Amaze, Honda’s first diesel project. The company built innovative iDTEC and iVTEC engines and the same engine is used in City and Mobilio MPV. The stand out feature of Amaze which triggered phenomenal sales is the class rending 25.8 kmpl mileage which is the best in its class. Honda has engineered the new City to be highly fuel efficient as well and moves with mileage of 26kmpl.

It is interesting to learn that Honda has been on a profit roll for the past months, when other firms are feeling the heat of recession with lower sale outputs than the corresponding periods. It is startling to learn that Honda’s one time Amaze wonder has generated heaps of profits to the company. Honda has used the same engine formula in City and Mobilio MPV. The public will certainly expect rocking sales from Honda in the coming months; Honda Cars India too has the same vision, and might be the reason behind its aim to build a new plant.