[sarathlal]

Honda has started a feasibility study for building a third plant and is considering Gujarat (Sanand) as a base, even before its second new plant in Tapukara, Rajasthan, begins production by early-2014.

These plans were reportedly discussed at a top-level meeting in New Delhi last month, where Honda Motor Company global chairman Fumihiko Ike and global president Takanobu Ito were present, according to the FinancialExpress reports.

This plant is expected to cater to an all-new model, a new entry-level small car in the Rs 3-4 lakh range positioned below its current entry model Brio (starts at R4.13 lakh).
The new small car will target high monthly volumes, competing with Hyundai Santro and Eon, and market leader Maruti Suzuki's Alto, the largest-selling car in India with monthly volumes of about 20,000 units.

Read the full report here: http://www.financialexpress.com/news...ndia/1178016/0
More on Honda's plan for the 'A' segment model: http://www.team-bhp.com/forum/indian...-alto-eon.html

[MaxTorque]

Looks like Honda is now more interested in numbers and market shares. Though it will be an interesting move from Honda, I doubt how they will actually improve their profitability. If they want to make product profitable, Honda may have to opt to for inferior quality products. This strategy may backfire in long run.

[Aditya]

Japanese carmaker, Honda is rumoured to be exploring the possibility of setting up a new plant in India. The manufacturer is looking for a plot of land, measuring about 250 acres and media reports indicate that it has already visited a site in Vithalapur, Gujarat.

The plot of land is about 110 km from Ahmedabad and located between the towns of Sanand and Mehsana. If things go according to the company's plans, this will be its third plant in India. The company's first manufacturing unit in the country was set up in 1997 and is located at Greater Noida, Uttar Pradesh. In February 2014, a new manufacturing facility, located at Tapukara in the Alwar district of the state of Rajasthan was inaugurated. It has an installed capacity of 1,20,000 units a year.

Maruti Suzuki has also bought land in Vithalapur, which can be used for expansion in the future. More recently, Honda Motorcycle and Scooter India Pvt. Ltd. purchased a plot of land in the same area.

Link to Team-BHP News Article

Source: Business Standard

[Aditya]

Honda will invest more than Rs. 1,000 crore in a new plant at Vithlapur in Gujarat.

Link to Team-BHP News Article

[srishiva]

I can only wish that the govt will bring in safety rules ASAP before we get inundated with cheap, un-safe and tinny cars.

[Gannu_1]

Good news! Even Suzuki has plans to setup a plant here. Gujarat has a huge coastline and several ports - perfect for manufacturers looking for exports to the Middle East, Europe and South Africa.