Honda Motor Co is looking to invest nearly Rs. 2500 Crores in its Bhiwadi plant as part of its expansion operations. The plant in Rajasthan currently manufactures only components, Honda is looking to expand it to be able to manufacture around 120,000 cars per year.
ET reports that Honda will roll out its first car from the plant next year. ET also claims that the Honda went solo, buying out the shares of its joint venture partner, Usha International in August 2012 over a disagreement on this investment in the Rajasthan plant.
The Amaze holds promise for the Honda brand, as does the diesel engine scheduled to be plonked in the rest of the Honda line up when the next generation City and Jazz reach our shores. An investment towards expansions now seems just about the right thing to do.