Honda Motor Co said on Friday that it would invest Rs 965 crore ($154 million) to expand its motorcycle and automobile production in India, targeting growing demand in Asia's third-largest economy.
The Japanese automaker said its unit, Honda Motorcycle & Scooter India, would spend Rs 585 crore to raise annual production capacity by a third to 2.4 million units at its factory in the Narsapura area, near Bangalore. The move will create about 1,900 jobs.
Meanwhile, its automobile unit, Honda Cars India , will invest Rs 380 crore to raise capacity by 50 per cent to 180,000 units a year at its Rajasthan factory in northern India. The moves will help increase Honda's overall annual production capacity in India to 6.4 million motorbikes and 300,000 automobiles, the company said in a statement.
“Honda is strengthening its 'Make in India' resolve through steady and strategic investments with a long term objective of creating 39 per cent additional capacity within 3.5 years," President & CEO of HMSI Keita Muramatsu said.
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