Japanese automobile giant Honda is setting up its second car manufacturing unit in Rajasthan at an investment of Rs 10 billion with a capacity to produce 60,000 units in the first phase.

""We are setting up our second plant in Bhiwadi. The unit will have an investment of around Rs 10 billion,"" said Masahiro Takedagawa, president and chief executive of the company's India unit, Honda Siel Cars.
""It will be operational by 2009 and have a capacity of 60,000 units in the first phase,"" Takedagawa said at a seminar here co-hosted by the state government and the Federation of Indian Chambers of Commerce and Industry (FICCI).
Officials said the company chose Rajasthan because it can conveniently cater to India’s largest market. The northern and eastern regions account for almost 50 per cent of the country's car sales.
Honda officials said the company would bring the same corporate culture to Rajasthan that the Japanese giant follows globally. It would also seek to generate as much employment in the state as possible by tapping local talent.
Apart from the manufacturing facility, Honda is also planning a suppliers' park, which will host and help in the development of a host of ancillary units, which will cater to the needs of the company.
Honda-which set up its India operations in 1995 and sells the ""City"", ""Civic"" and ""Accord"" sedans and the ""CR-V"" sport utility vehicle-is also doubling the capacity at its Greater Noida plant on the outskirts of the national capital.
""That plant is reaching its maximum capacity. It will produce 100,000 units by January,"" Takedagawa said.
According to officials of the Rajasthan State Industrial Development and Investment Corp., a host of automobile ancillary units were already operational in the state with an investment of around Rs.7 billion.
The state-run corporation that promotes investments in Rajasthan also proposes to develop another auto components zone near Bhiwadi with the aim of attracting investments to the tune of Rs.30-50 billion.
Meanwhile, Honda officials said the company proposes to soon showcase in India the ""Jazz"" hatchback and the new version of its top-end ""Accord"", also called ""Honda Inspire"", with a 2.4-liter petrol engine and a 3.5-liter variant.
The ""Civic"" hybrid and a prototype of its Formula 1 car are other models the company proposes to showcase, keeping in view the prospect of India hosting Formulae 1 racing by 2010. Honda has 130 plants in 30 countries, with operations in 160 countries.
(Source: Indo-Asian News Service)