Honda Cars has bought 380 acres of land at Vithalapur in Gujarat to set up its new plant for enhancing its selling units in future. The land, around 80 kms northwest of Ahmedabad, is nearby the company’s two-wheeler subsidiary Honda Motorcycle and Scooter India which produces about 1.2 million units annually.
The year 2016 was the declining phase for the company when the sales slid down to 1,58,658 from 2,12,372 units in 2015 with almost 25 per cent fall. Honda has its two assembly lines, one in Greater Noida and another one in Tapukura in Rajasthan with a combined capacity of 2.4 lakhs of units.
The company has not revealed any immediate plan to set up a plant. Once they finalise the third plant they will have this land ready to be utilised, confirmed by Yoichiro Ueno, Chief Executive, Honda Cars India.
All the formalities regarding closing this deal are completed on this February. According to the sources, the land parcel’s agreement was finalised on the payable amount of Rs 1,000 crore.
Source: ET Realty