Honda India on expansion mode, invests Rs 380 cr

Honda India on expansion mode, invests Rs 380 cr

Honda Cars India has added additional capacity in its Rajasthan facility to the tune of 60,000 more units at a cost of Rs 380 crore.

Honda launched its compact SUV BR-V (Bold Runabout-Vehicle) here on Wednesday has a production capacity of 2.4-lakh units at its Noida and Rajasthan manufacturing facilities.

The BR-V is available in diesel and petrol fuel options, with the petrol variant being equipped with a 16-valve, 4-cylinder, 1.5 litre i-VTEC engine with 6-speed manual transmission. The diesel variant comes with 1.5-litre i-DTEC engine from earth dreams technology series in 6-speed manual transmission. While the price of petrol variants range from Rs 8,91,000 to Rs 12,20,000; the diesel variants range from Rs 9,99,000 to Rs 13,13,700 (all prices ex-showroom Hyderabad).

“The SUV market size was 3 lakh units last year, and it grew at 35%. We have sold 1.92 lakh units, and exported 500 units. We have just launched BR-V and till Tuesday, we had 4,600 bookings,” Jnaneswar Sen, Vice-President (Sales and Marketing) said. He added that the production of the additional units will begin within 3 months. He added that Honda’s units have utilised over 83% of installed capacity, last year.

Commenting on the impact of the apex court’s ban on diesel vehicles, Jnaneswar said, “We are looking at a good growth this financial year, but in the past few months, we had the problem of shift from diesel to petrol, we need lead time to change. If there is no further surprise, petrol units will have a major share of around 75%. Our manufacturing units are flexible, but component and supply chain changes take time,” he added.

Honda, which has around 7% market share, hopes to improve further with the launch of its third new vehicle, the Honda Accord (Hybrid) by September or October, this year. In terms of dealerships, Honda is planning to have 340 outlets by March 2017, in 190 cities.
DH News Service

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