Honda has announced a new investment that will be used for setting up a new plant to make electric vehicles and launch new vehicles in India
Honda Cars India is planning to infuse more investment in the Indian market in order to expand the business and market share. The Japanese manufacturer has earmarked an investment of Rs. 9,200 crores for the Indian market that will be spent over the next decade.
The new investment will be focused on the new vehicles and a new plant in India. As per reports, the Japanese brand is expected to launch electric and hybrid vehicles in the Indian market. Honda has been present in India since 1998 and the new investment is the largest single investment that the brand has done till now in India.
The Indian market is expanding at an unstoppable pace and by 2020, the market is expected to become the world’s third largest. Honda India’s Gaku Nakanishi said that the Indian market is one of the most critical markets for the Japanese brand in the world.
Honda is also planning to set up a new plant in Gujarat that will be the primary facility for the production of hybrid and electric vehicles for the Indian market. Honda is looking at a space of 380 acres to set up the third plant. Honda currently operates from Greater Noida, UP and Tapukara, Rajasthan. Both the facilities have a combined production capacity of 2.8 lakh units per year. It should be noted that Honda currently sells around 1.7 lakh units of cars as per 2017-18 data.
At the 2018 Auto Expo, Honda announced that three all-new cars will be launched in the Indian market soon. Of them, the all-new Amaze and the all-new CR-V have been already launched. The next big launch from the brand will be the all-new Civic, which will return to the Indian market after skipping a whole generation.
Honda is also expected to launch a hybrid version of the City or the Jazz in the Indian market. Both the models are available as hybrids in the international markets but looking at the popularity of the City, it has more chances of launching in the market than the Jazz.