Honda Will Build 2nd Indian Plant
Honda Motor Co. will invest $150-200 million to set up a second automobile plant in India. The deadline – 2009.
Initial capacity will be 50,000 cars.
The location will be in northern Rajasthan near New Delhi and will become the main manufacturing base in India with room to expand to 200,000 vehicles.
By increasing production at its current plant to 100,000, Honda hopes to chase down Hyundai and Suzuki by producing as many as 300,000 cars in one year.
India's market is expected to grow by 20% to 1.3 million cars ending in March 2007….2 million cars by 2010.
Honda's market share is 4.5%….but not for long.
What do you think?
