Honda to increase its production capacity at Tapukara plant

Honda Cars India has confirmed increase in the production capacity at its Tapukara plant in the next seven to eight months. The company will achieve this by starting second production shift that will help to meet its target of 2 lakh units in 2014-15, which is a 50 per cent jump from its current sales.

The Japanese manufacturer may also consider ramping up the capacity of the Tapukara plant in the next two-three years as it targets sales of 3 lakh units a year by 2016-17.

"Currently we are producing our cars in only one shift at Tapukara. With growing demand for our cars, we will go for full capacity of the plant in the last three-four months of this fiscal," said Shigeru Yamazaki, senior vice president and director, sales and marketing, Honda Cars India.

"After launching the Amaze last year and the recent introduction of the new City, our sales are growing despite a tough market condition. Depending on availability of components and demand, the company is capable of producing 2 lakh units in this fiscal," he added. 

Honda currently rolls out 60,000 vehicles in a year and depending on the demand, it can roll out more as the capacity is 1.2 lakh units in double shifts.  Honda aims  to sell around 60 lakh vehicles globally in 2017, whereas India’s sales target is around 3 lakh units. 

The Japanese manufacturer is at full advantage. It has excess land in Tapukara, which could be used in future depending on the market. Right now, it is enjoying the success with the Amaze and the City and is expected to continue with this streak as their next launch, the Mobilio MUV, will hit the Indian market next month. This MUV will compete with the Maruti Suzuki Ertiga, and there is a high chance of this vehicle getting lot more sales for the company.