Honda considering a new car manufacturing plant in Gujarat

After Tata, Ford, Maruti Suzuki, another car manufacturer is planning to establish its manufacturing facility in the state of Gujarat. According to a latest report from PTI, Honda Cars India Ltd. (HCIL) is in final talks with the state authorities for a proposal to set up a new car plant near Vithalapur village in Ahmedabad district. With an investment of over INR 1,000 Crore, the new manufacturing facility will be build under the "mega project" category of Gujarat's new Industrial Policy.

"The proposal is in the final stage and would get approval of the state cabinet under our Mega Industrial Policy within next few weeks time," a person familiar with the development said.

This will be Honda's second major investment in Gujarat, particularly in the same Vithalapur village. As just three months back, company's 2-wheeler entity- Honda Motorcycle and Scooter India Private Ltd (HMSI), had already announced the establishment of world's largest scooter plant at the same village, 110 kms away to be precise from this location, with an investment of INR 1,100 crore. For this, HMSI had signed a State Support Agreement with Gujarat government in September for setting up the same.

Though final details about the plant, such as capacity and workforce is yet to be disclosed.