NEW DELHI, April 2 Honda Motor Co will
spend 25 billion rupees ($460 million) on a 120,000
cars-per-year plant in India, a senior executive said, as the
Japanese carmaker looks to ramp up its activity in the country
after splitting from its former partner.
Honda will roll out its first car from the plant in
Rajasthan, western India, next year, Yoshiyuki Matsumoto, Honda
managing officer, told reporters on Tuesday.
The investment will allow the plant, which currently builds
car parts, to produce full vehicles. Honda will also introduce
diesel models across its entire range in India, the company
Honda's car sales in India have grown by around 45 percent
this financial year, bucking negative growth in the wider
industry, thanks to its small Jazz and Brio models.
The Japanese carmaker ended a 16-year joint venture in India
in August after buying out its former partner, which had
disagreed with Honda over a ramping up of investment in the
business that saw the Rajasthan factory delayed.
($1 = 54.3500 Indian rupees)
(Reporting by Matthias Williams; Editing by Gopakumar Warrier)