Sales of new cars are gradually picking up momentum and carmakers are working hard to get their chunk of as many new buyers as possible. For many companies, adding more sales numbers means expanding their current production by setting up a new production facility. Honda India, for one, has just announced that it will invest Rs 2,500 Crore in its Tapukara plant in Rajasthan to ramp up its output.
Besides producing the much talked about 1.5 Litre i-DTEC turbo diesel engine, Honda says the expansion will allow the company to produce 120,000 cars every year from its Rajasthan facility. After completion, the new assembly line is expected to bring about employment for 2,200 people by 2014.
Honda has earlier indicated that it is planning to make the Rajasthan plant as a hub for diesel engine components. The 1.5-litre i-DTEC diesel engine developed under Honda’s ‘Earth Dreams’ technology will be used as a base for a number of engines with different capacities, which will power the company’s upcoming models.