Honda India earmarks 2,500 Crore Rupees for new car and diesel engine factory at Rajasthan

Honda Cars India is bullish about its growth prospects in India and to this end, the Japanese car maker is sinking in 460 Million USD or 2,500 Crore Rupees at Tapukara, Rajasthan. Tapukara is the location of Honda’s second car factory in India. The facility will build 120,000 cars every year and will also play host to a diesel engine plant. Honda’s 1.5 Liter i-DTEC turbo diesel engine will be the first motor to roll out from this plant. Honda’s diesel engine plant will be capable of producing no less than 163,000 engines each year.

2013 Honda Brio Amaze Compact Sedan

2013 Honda Brio Amaze Compact Sedan used as an illustration

This big number indicates Honda’s ambitions in the Indian car market. The car maker is betting big on diesel power and in the next couple of years, Honda plans to have no less than 3 turbo diesel engined cars. Eventually, the idea is to convert most of Honda India’s car range to turbo diesel power. In that light, the 1.5 Liter i-DTEC turbo diesel engine from Honda promises to be what the 1.3 Liter Fiat Multijet turbo diesel engine is to Maruti Suzuki. So, expect to see the 1.5 Liter i-DTEC motor as a staple in future Honda cars such as the Brio Amaze, the next generation Jazz and the next generation City sedan.

Honda could launch more derivatives of the Brio platform in India. A compact MPV could be the third derivative in the Brio platform for India, after the likes of the Brio hatchback and the Brio Amaze sedan. Honda could also launch the Jazz based compact SUV in India after 2014. In 2014, the next generation version of the Jazz hatchback and the City sedan are expected to be launched in India. All new mass market cars from Honda for India are expected to feature turbo diesel engines in addition to petrol engines.

With Honda planning a car blitz for India, the car maker could also get into dealership expansion as the brand is primarily known as an urban brand currently. Expanding into smaller cities and towns of India will allow Honda to target market leader Maruti Suzuki and Hyundai, India’s top two car makers.

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