Honda SIEL Cars India is planning to establish a car assembly unit at its Rajasthan facility among various other steps being taken to regain its market share which has been lost due to various production problems such as component supply shortage from Thailand. According to Mr. Jnaneswar Sen Honda Siel Cars Senior Vice-President (Sales and Marketing), the company will consider the new assembly plant once its Greater Noida facility attains full capacity.
The plant will have an initial production capacity of more than 60,000 units and further expansion will depend upon the market response to the Brio hatchback in the domestic market. The production of the hatchback was put on hold in December 2011 due to shortage of components supply from Thailand. The company has restarted the production of the hatchback through alternative sources of component supply.
In the time being, having realized the absence of diesel car models in its portfolio, Honda is now engaged in developing a diesel engine in Japan keeping the Indian market in mind.