Honda not in hurry to set up car manufacturing plant in Gujarat

Ahmedabad: The Government of Gujarat is in process to acquire land for future car manufacturing plant in the State, said Rajesh Goel, Senior Vice President and Director, Marketing and Sales, Honda Cars India Limited adding that the company’s Gujarat plans are for future requirements.

‘We have total 2,80,000 unit total manufacturing capacity in our two car manufacturing plants in India at Rajasthan and Uttar Pradesh, against which total production was 1,70,000 units last year. We have capacity available to produce more cars at present in existing plants. We are looking for another plant in Gujarat for future expansion when need arise. The Government of Gujarat is acquiring land for that,’ he said.

On sales front, Honda’s growth in Gujarat was 15% against 8% nationally, Goel said, adding that Gujarat’s share in total cars of Honda sold last year was little over 10%. Honda sells on an average 4,000 cars every month in India.

The company is hoping to increase its market share with launching of All-New 2nd Generation Honda Amaze. Goel and his team was here to launch the same in Gujarat. Company’s share in this segment at present is 6-7%.

The new Honda Amaze has first in industry diesel CTV technology. Its price range is Rs 5.60 lakh to 9 lakh, depending on variants that are E MT, S MT, V MT, Vx MT, S CVT and V CVT. A new car takes 3 years time to pass the journey from concept to launch. The company targets 25-40 age males as buyers for new Amaze, 39% of could be in business, 22% traders and 29% salaried.


On electric cars

Goel said Honda aims 2/3rds of its cars to use alternative technology by 2030. Alternative technology segment includes hybrid cars, electric cars and plugin hybrid cars. He said Honda had launched a hybrid Honda Civic as early as ten years ago. Hybrid car run using electric power and conventional engine both, which is convenient, as one can continue to drive a car through conventional mode without worrying about discharging battery. Goel said, ev car will have big battery which shall add cost. Whether customers are able to bear this cost, is a question that is asked globally. Then there’s no infrastructure available for battery charging in cities, highways and elsewhere. Once the infrastructure is in place and more clarity prevail, the company can take risk of making investment. The company had recently displayed its ev car in expo, he added.

On future launches

Goel said Honda will launch new CRV and Civic models in second half of this year in India.