Honda Cars India on Wednesday said it will continue with its investment plans of Rs 2,500 crore as announced earlier this year.
“There is no change in our investment plans. In the beginning of April we had announced Rs 2,500 crore investment and it is going on as per schedule,” Honda Cars India Ltd (HCIL) SVP (Marketing and Sales) Jnaneswar Sen told PTI.
The company is investing in three verticals — a new car assembly line,a diesel engine plant and a forging plant at its manufacturing facility at Tapukara in Rajasthan.
“Diesel engine plant is ready and the other two projects will be ready by the end of next year,” he added.
Sen was speaking on the sidelines of the annual convention of Society of Indian Automobile Manufacturers (SIAM).
When asked if the company was planning to increase the prices of its products due to rupee depreciation,Sen said the company is closely watching the situation and has so far not arrived at any decision.
“Our products like Brio and Amaze have over 90 per cent of localisation and City sedan has over 70 per cent of localisation. So there is no significant impact of rupee depreciation for us,” Sen said.
The company is also planning to increase its exports in the current financial year.
“In the last fiscal year we exported 2,500 cars and components worth Rs 250 crore. In the current fiscal we plan to export 6,000 cars and components worth Rs 600 crore,” he added.
The company,a subsidiary of Honda Motor Co Ltd,Japan exports its products to neighbouring countries and South Africa.