Honda Siel puts off Rajasthan plant completion to 2011
28 Aug 2009
Honda Siel Cars India, a joint venture between Japan's Honda and India's Siel, said it has postponed its Rajasthan plant completion by two years due to weak demand.
Honda Siel Cars vice president of marketing, Jnaneswar Sen, said the new plant would be completed by the end of 2011, two years behind schedule. Sen, was speaking to media on the sidelines of a SIAM annual convention in New Delhi on Friday.
Honda Siel, which currently has a manufacturing facility at Greater Noida, UP is setting up a second plant in Alwar, Rajasthan.
The Rajasthan plant involving an investment of Rs1,000 crore was to be completed in two phases by 2009. The first phase of the plant has concluded with the completion of a facility to produce body parts of the sedan Honda City and hatch back Jazz, according to Sen. He added that the full car roll out from the plant would be possible when the second phase goes on stream.
The company has invested Rs750 crore in the plant so far.
The company is planning to increase the number of shifts at its Greater Noida facility to meet the festive season demand. The company would start double shift by next month, according to Sen.
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