Honda Siel to start second plant in India in Rajasthan

Honda Siel Cars India (HSCI) will soon be starting work on its second plant in the country, in Rajasthan. The company had earlier put its plan to start production at the Rajasthan plant on hold, due to declining demand. The plant will have an annual production capacity of 60,000 units and will see an investment of $215 million. Production at the unit will begin after HSCI utilizes the full 100,000-unit capacity at its first plant near Delhi, said Mr Jnaneswar Sen, HSCI’s marketing head.

Meanwhile, Honda Motorcycle & Scooter India (HMSI) is expecting to sell 1.25 million two-wheelers in FY 2009-10 and 1.5 million in FY 2010-11. The company said in a press statement that it would sell close to 220,000 units of the CB Twister 110cc motorcycle this year.