Honda Siel Cars India (HSCI) may pump in more funds to expand its production capacity at its second facility Tapukara to meet the increasing demand for its two hatchbacks, the Brio and the Jazz.
The compact five-seater Honda Brio and the premium hatchback Honda Jazz have a waiting period of four to five months at certain car centers and the company is ramping up its production capacity at its headquarter facility in Greater Noida to produce more units of the two models. The demand for Honda Jazz shot up after its price was reduced by Rs. 1,60,000 in August 2011. Some centers are witnessing a waiting period till March 2012 for the Jazz.
Mr. Takashi Nagai, President and Chief Executive, HSCI, stated the joint venture plant capacity was 1,00,000 units and if the Brio, which was recently launched, sold more than 40,000 units, then the company will boost its plant capacity.
Before the launch of the Brio, the company was utilizing 60 per cent of the plant capacity or 60,000 units per annum making models like the City, the Civic, the Jazz and the Accord. The company’s second plant in Rajasthan’s Tapukara, at present does not produce any vehicles, but only produces critical parts for all Honda cars in India and for overseas markets. The company is planning to carry out a feasibility study before making investment at its Rajasthan plant to boost its production.
