Honda India plans a new production facility in Gujarat

Gujarat has been an ideal destination for automobile manufacturers to set up their respective facilities, thanks to the state’s affinity to give out better economic benefits to the brands. Honda India is now planning to set up a new production facility in the state. According to a few reports, the brand has approached the Gujarat government with a proposal to build a new car manufacturing plant near Vithalapur village in Ahmedabad district.

Looking to rev up its plans to set up this new facility, Honda plans to invest over Rs 1,000 crore in this new initiative which falls under the "mega Project" category of the new Industrial Policy of the state government. 

This will be Honda's second major investment in Gujarat. In the past, Honda Motorcycle and Scooter India Private Ltd (HSMI) had signed a State Support Agreement with Gujarat government for setting up a new two-wheeler manufacturing plant with investments of up to Rs 1,100 crore.

Honda India currently has two car manufacturing facilities in the country: One in Greater Noida, UP and the other at Tapukara, Rajasthan. The brand’s locally made and CKD range includes the Brio, Amaze, Mobilio and the CRV. 

Source: EconomicTimes