Honda Motor Co on 3 July 2006
announced that it would invest Rs.3,000 crore over the next ten years, in its
Indian operations. This would be identical to the investment made (in nominal
terms) over the past twenty years in India.
Hondo Motors has also planned to
launch a small car for which it was considering setting up a second production
unit. Details of the small car project are under preparation.
Honda is planning to expand capacities
in both two-wheelers and cars in the coming years. By 2010, two-wheeler capacity
is targeted at 7-7.5 million in a total Indian market of around 12 million units
per year. Car production would be trebled from its exiting levels to 1.5 lakh.
Besides, a new company Honda Motor
India Pvt Ltd is being formed that would co-ordinate requirements of components for
various group companies. In future, this new company might also be converted
into a holding company for all existing and future entities.
Currently, Honda has a presence in
India through four companies:
|
Company |
Indian Partner |
Activity |
Honda Stake (%) |
| Hero Honda Motors Ltd |
Hero Motors |
Motorcycles |
26 |
| Honda Motorcycle &
Scooter India Ltd |
-- |
Motorcycles &
Scooters |
100 |
| Honda Siel Power
Products Ltd |
Shriram Group |
Power generating sets |
67 |
| Honda Siel Cars India
Ltd |
Shriram Group |
Cars |
99 |
Incidentally, Honda is planning to
reduce its stake in Honda SIEL Cars India Ltd from 99 per cent to 95 per cent by
divestment in favour of the SIEL group. The divestment, valued at Rs.73 crore,
would be made by end-2006.
Also See:
Honda advances
expansion deadline (18-May-06)