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Old 20th February 2017, 11:18   #1
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Default Honda Cars to set up new plant in Gujarat

Honda acquires land in Gurarat for 1000 Cr to setup a new plant.


Source - ET.

I wonder why would they do this. Their Rajasthan plant is far from running at full capacity, and we do not see a large volume growth specially considering they are going more premium now(with their pricing strategy).
Could this be for exports from India?
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Old 21st February 2017, 20:58   #2
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Default Re: Honda Cars to set up new plant in Gujarat

I guess Honda is seeing this as an investment (in land) rather than an expense. This move looks like it's a part of long term India business plan.

The next brio platform will be ready in 2018 and it will be global platform. If that becomes a super-hit (like Honda City), then all that excess capacity will vanish in no time.
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