Tokyo, December 20, 2004 --- Honda Motor Co., Ltd. today announced that Honda Siel Cars India Ltd. (HSCI), a Honda automobile production and sales subsidiary in India, plans to expand its annual automobile production capacity from the current 30,000 units to 50,000 units by the end of 2005 through expansion of the existing plant and by bolstering its weld and paint equipment. Total investment for this expansion is expected to be 1.34 billion rupee (approximately 3.15 billion yen).
Reflecting the healthy condition of India's domestic economy, the overall automobile market in India has exhibited sharp growth and is expected to reach 1.35 million units in 2004 (a 24% increase from the previous year) - making India one of the largest automobile markets in Asia. Moreover, the market segment in which the Honda City and Accord are positioned is expanding and now accounts for more than 10% of the entire market. Due in part to strong sales of the City, HSCI's total sales for 2004 is expected to reach 35,000 units, more than double the sales total of the previous year. Expanding production capacity will enable Honda to continue to meet growing demand in India.
Honda Siel Cars India Ltd.
|Established :||December 1995|
|Start of Production :||December 1997|
|Capital Investment :||3.6 billion rupee|
|Capitalization Ratio :||99.9% Honda Motor Co., Ltd.
0.1% Siel Ltd.
|Location :||New Delhi, India|
|Representative :||Hajime Yamada, President|
|Employment :||Approximately 1,400 associates|
|Production Models :||Accord, City|
|Annual Capacity :||30,000 units (to be expanded to 50,000 units by the end of 2005)|