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Honda to invest Rs 9,200 crore to set up hybrid, electric vehicles plant in India
Japanese auto major Honda plans to invest Rs 9,200 crore to set up its third factory in India to produce hybrid and electric vehicles, the Times of India reported adding that this is going to be the auto major's largest investment in India so far.
“India is one of the most critical markets for Honda globally, and we want to strengthen our operations here,” the daily quoted Honda Cars India president & CEO Gaku Nakanishi as saying. “The new investment — which we plan to make over the next decade — signals our commitment towards the growth potential in the Indian car market and underlying strength here.”
The fresh investment will take Honda's total investment in India to over Rs 18,500 crore since it began operations in the country in 1998. The company is in the process of acquiring 380 acres of land for the new factory, which will be set up in Gujrat, the ToI report added. Currently, Honda has two factories in Greater Noida and Rajasthan with an installed capacity of 2.8 lakh units which is much higher than the company's sale of 1.7 lakh units in the previous fiscal, the daily added.
Honda has started work on identifying new products and opportunities in the electric and hybrid car segment, the daily quoted Nakanishi as saying. “While the company needs to work towards providing appropriate products, the government has to focus on charging and allied infrastructure. Government subsidies and benefits to customers will play an important role in the acceptance of products,” he further said.
It may be noted that Honda's electrified vehicle range Clarity is already available in US and Japan but for India, the company said it is adopting a very different approach, the daily said.