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Honda to build new plant in India

From ASSOCIATED PRESS| January 18,2007

TOKYO — Honda Motor Co. will invest $150 million to $200 million to build a second plant in India to meet growing demands for cars there, an official said Monday.

The Tokyo-based manufacturer of cars and motorcycles will locate the plant in the northwestern state of Rajasthan, according to Honda spokeswoman Yasuko Matsuura.

 Honda has yet to decide on the exact site of the new plant, but it will be selected in coming months, and construction is to begin later this year, Matsuura said.

That plant will begin operating in the first half of 2009 with an initial capacity of 50,000 cars a year, and Honda plans to increase it gradually, according to the spokeswoman. The company plans to find a site large enough to produce 200,000 cars annually, she said.

Honda has a plant in Uttar Pradesh with the production capacity of 50,000 cars. The company has announced to increase the production capacity 100,000 cars by the end of 2007.

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