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Eyeing Indian small car market and in a bid to earn fringe benefits, Honda Seil Cars India (HSCI) had announced a whopping budget of over 250 crores’ investment in its existing Tapukara plant in Rajasthan for the expansion of its power train facility.

The same facility is being frisked out to ensure cost cuts and localization of the cars the company is eyeing to roll out as its small cars.

Once the facility of the plant is increased by the year end, it’s being speculated that it will help the company achieve 80% localization.

If the company is able to achieve the target of 80% localization, then the auto major expects the prices of its small cars to be very much competitive and in sync with the standards of others potential players in the same league of business.

The invested plant in Rajasthan is being speculated to be completed by the end of 2010 and once completed, would be utilized to manufacture engine and transmission components like cylinder heads and cylinder blocks which were till now being imported from Thailand & Indonesia.

The Tapukara plant currently produces crankshaft and connecting rods for its greater Noida plant and for export purposes.

The Tapukara Power Train facility expansion will help us to enhance our overall capacity in future and also to accrue benefits of low-cost manufacturing available in the country. This will enable us to capture more opportunities in one of the fastest growing vehicle markets in the world.

Mr. Takashi Nagai, President & CEO, HSCI was stated as saying on the company’s commitment to the automobile industry.

HSCI’s investment at the Tapukara plant is a step towards our aim to make India the future manufacturing base for critical components for our global operations. Additional investments of will further strengthen our commitment to Indian automobile industry

He added on other plans of the company being planned to be rolled out from the plant.

We too, at autoindiaforum.com can’t wait to see and observe the actual implementations of the activities on its installation after completion and its effects too on the Indian automobile world, notwithstanding!