Indian auto industry has become very attractive because of its growth prospect and Honda bosses have realized that it is high time they take India very seriously. So, Honda has announced an aggressive plan to increase its production capacity in India by leaps and bound. This year, Honda hopes to see its sales figure jumps to 62,000 units. By the end of 2007, Honda wants to take its production capacity in India to 100,000 units and by 2010 to 150,000. To achieve this goal, Honda is going to invest 30 billion rupees ($650 million) in the next 10 years.
Honda's announcement came perhaps at the right time as all the other auto companies are also trying to increase their production capacity and market share in India. Honda has a strong present in India in several fields. Honda has 26% stake in Hero Honda, the leading motor biker in India and 99.9% ownership of Honda SIEL Cars India Ltd. Honda also sells generator in the country.
This initiative of Honda will surely help the company to strengthen its position in the Indian market.
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