Honda acquires 380 acres land in Gujarat for Rs. 1,000 crore

Honda has acquired 380 acres of land in the state of Gujarat for a reported amount of around Rs. 1,000 crore. The said investment has been made to set up a new production facility in the future.

Interestingly, Honda's current manufacturing plants in Greater Noida and Rajasthan are currently operating below their full capacity. The two plants have a cumulative production capacity of 2,40,000 vehicles, but are currently utilizing just 60-70% of the available bandwidth. However, Honda is trying to avoid the risk of rising realty prices in the country and has thus acquired the land in anticipation of a future increase in demand for its vehicles.

The acquired land is located at Vithalapur, which is around 80 km away from Ahmedabad. Honda also has a production facility for two-wheelers in the same region. The land has been bought from individual owners.

Source: ET