Ahmedabad, 13 May 2013

Honda is coming to Gujarat, and its plant may be functional even before early entrant Maruti.

According to the Nikkei, Honda Co Ltd will build a fourth plant likely to be in Gujarat, at a cost of about 20 billion yen($200.39 million).

Honda plans to increase its motorcycle production capacity in India by 30 percent by 2016, aiming to catch up with market leader and former joint venture partner Hero MotoCorp Ltd, the Nikkei reported.

Honda’s output capacity in India will rise by 1.2 million to 5.8 million units once the plant starts producing, the Nikkei said. Honda will hire 3,000 workers, it added. ($1 = 99.8050 Japanese yen)

According to market watchers, unsuitable land given to Honda in Bangalore, no support from state two suppliers paved way for Honda’s Gujarat decision.