Honda to invest Rs. 380 crore in expansion of Tapukara plant

Honda Cars India has announced that it will invest Rs. 380 crore in the expansion of the annual production capacity its Tapukara plant. This will enable the facility to churn out 1,80,000 unit per annum as opposed to the current 1,20,000 units. The additional capacity is scheduled to be ready by middle of 2016. The step is expected to generate fresh employment for about 600 people.

With the expansion of the 2nd plant, Honda's overall annual production capacity will be bumped up to 3,00,000 units from the current 2,40,000 units. Honda's Greater Noida plant is capable of rolling out 1,20,000 units per annum.

The Tapukara plant, which is located in Alwar district in the state of Rajasthan, started operations in February 2014. The facility integrates various functions including operations for forging, casting, stamping, powertrain components production, welding, painting, resin molding, engine assembly, and frame assembly as well as an engine testing facility.

Honda's domestic sales have grown by 44% growth during the period April 2014 - Feb 2015. The company managed to sell 1,66,366 units as against 1,15,913 units in the corresponding period in FY 2013-14.