Honda Motor Co has planned to advance
its passenger car capacity expansion programme by three years. The Japanese
major now plans to double its car capacity to 1 lakh units per year by end-2007
instead of the originally scheduled 2010.
Honda currently has a capacity of
50,000 units per year at its Greater Noida unit in Uttar Pradesh. In late 2005,
the company completed an expansion programme costing Rs.150 crore increasing
capacity from 30,000 units per year to 50,000 units per year.
The capacity doubling project, likely
to cost around Rs.700 crore, would be financed entirely through internal
accruals.
Honda markets its cars in India
through a joint venture with Shriram Enterprises, called Honda Siel Cars India.
Also See:
Honda Siel plans
Rs.700 crore long-term capex (14-Dec-05)