Honda Cars India is close to finalizing a new plant in Vithalapur, around 80 km from Ahmedabad, Gujarat. Within the next three to four weeks, the car maker would sign a State Support Agreement with the Gujarat government, industries commissioner Mamta Varma told the publication.
Initially, Honda would invest INR 2,200-2,500 Crores in this facility, though the final investment is expected to touch INR 4,000 Crores. The plant is expected to have an annual production volume of 100,000 to 125,000 units per annum.
Honda Cars India currently operates two plants – in Greater Noida and Tapukara – with combined annual capacity of 240,000 units. In March this year, the Japanese car maker announced an investment of INR 380 Crores in its Tapukara plant to increase production capacity from 120,000 units to 180,000 units per annum by mid-2016.