On 3 May 2007, a Memorandum of Understanding (MoU) was signed between HSCI and the Government of Rajasthan (GoR) for setting up a Car Plant.

The MoU was signed by HSCI President and CEO, Mr. Mashiro Takedagawa and Principal Secretary, Industries, GoR, Mr. Ashok Sampatram, in the presence of the Hon'ble Chief Minister of Rajasthan, Smt. Vasundhara Raje; Industries Minister, Mr. Narpat Singh Rajvi and other senior government and HSCI officials.

 
Mr. Ashok Sampatram (left) and Mr. Mashiro Takedagawa signing the MoU

According to the MoU the new plant will be set up in over 600 acres of land in Alwar district. The company is making an initial investment of Rs.10 billion.The new plant will have an installed capacity of 60,000 units and more than 1000 people will be provided employment in the first phase. The first car will roll out in the last quarter of 2009.

Project Highlights
Area: 600 acres
Initial investment: Rs.10 billion

Initial Production capacity: 60,000 units

Employment generation for over 1,000 people in Phase I

First car manufactured from the new plant to role out in 2009

Total planned capacity 200,000-250,000

Total investment Rs.2000 crore
Hon'ble Chief Minister, Smt. Vasundhara Raje with Mr. Mashiro Takedagawa of Honda 

On the occasion, Smt. Raje said that the GoR had announced the constitution of Bhiwadi Industrial Development Authority and this would be helpful in the integrated development of Bhiwadi from industrial point of view.

 

" This is not just a much anticipated moment of pleasure but also is a very important day for us since it marks a significant step in our vision of transforming Rajasthan into a state known not just as a preferred tourism destination, but also as a state where large corporates can feel at home, while doing business. On this historic occasion, I welcome Honda Seil to be a part of the Rajasthan family. Now the State is your home as much as it is ours."
These were the words of the Hon'ble Chief Minister of Rajasthan,
Smt. Vasundhara Raje as she welcomed the Japanese auto giant,
Honda Siel Cars India Ltd. to the State.
 
Hon'ble Chief Minister, Smt. Vasundhara Raje addressing the gathering at the MoU signing ceremony of Honda Siel Cars India ltd.

She added that automobile and manufacturing units had an important role in raising the growth rate, and that the establishment of HSCI plant in Rajasthan was the right step in this direction. She said that the Government was making all efforts to ensure that big companies came to Rajasthan and people of the State got more and more employment opportunities.

Mr. Narpat Singh Rajvi said that the MoU was a milestone in the development of Rajasthan. He also said that the GoR had made serious efforts for promoting industrial development in the last three years, as a result of which Rajasthan had emerged as an investor friendly state in the country.
  
   
Hon'ble Industry Minister, Mr. Narpat Singh Rajvi addressing the gathering

The Minister of Japanese Embassy, Mr. Toshisugu Uesawa said that the Indo-Japanese relations dated back to 6th century when Buddhism was introduced in Japan. He added that India was the most important nation in Asia for Japan. He also informed that Japan was looking for cooperation with India in many other projects for which discussions were underway. He hoped that the Honda project would further cement the Indo-Japanese ties.

Mr. Takedagawa declared that the MoU marked an important day in the history of HSCI and that Honda Motor Co.'s journey in India had been extremely successful. He said that the MoU was the first step towards their commitment to the State of Rajasthan and the consumers in India. Citing the reasons for establishing the second unit in Rajasthan, he said that the main reason had been the pro-active support and conducive environment for investment in Rajasthan. He added that the objective of the company was also to contribute to the economic development of the State. He said that the company would also tie up with the local ITIs and provide training to the youth.

Propagating Employment
Speaking on the occassion, Hon'ble Chief Minister Smt. Vasundhara Raje expressed the hope that with the establishment of Honda Car Plant in Rajasthan, the objective of social and economic development of common people would be achieved along with the industrial development. She noted that over 1,000 people would get employment in the project's first phase itself. In the later phases, the employment capacity is expected to increase to over 5,000 persons.

Smt. Raje pointed out that Rajasthan was fast emerging as an investor-friendly state and the automobile manufacturing units would play a significant role in raising the State's growth rate.


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(L-R) Mr. Kuldeep Ranka, Mr. Umesh Kumar, Mr. Ashok Sampatram, Mr. Siddharth Sriram,
and Mr. Mashiro Takedagawa

Chairman of HSCI, Mr. Siddharth Shriram said that the MoU was like the dawn of a new era for Honda and State of Rajasthan. He hoped that the investment in this plant would also serve as a catalyst for many good things in Rajasthan and usher an era of rapid growth and development for all. Honda, apart from setting up its car plant, will also be developing a suppliers' park to locate its critical suppliers. The industrial site Khushkhera in Alwar district is strategically located for HSCI, given its proximity to Honda's biggest market that are in the North and East of the country. They account for about 45 per cent of total HSCI sales.

HSCI's current manufacturing unit is at Greater Noida in Uttar Pradesh, with a production capacity of 60,000 cars per annum, which is also being expanded by 10,000 to cater to the growing demand of Honda Cars and the projected growth in the automobile market. With the new Greenfield project in Rajasthan, its total capacity will increase to more than 150,000 units by 2010.

Honda Siel Cars India
Japanese carmaker HSCI began manufacturing in India ten years ago, and is today a billion-dollar company, the eighth car major, globally. It has its subsidiaries in the US, the UK, Japan, China and Thailand. Honda's sales in India stood at 61,000 units in 2006-07, against 43,000 units in the previous fiscal. Its new manufacturing plant in Rajasthan will greatly help boost Honda's presence in Asia's fourth-largest auto market, where annual sales are forecast to triple to three million units by 2016. With this, Honda will compete with giants like Suzuki Motor Co. and Hyundai Motor Co.

Mr. Takedagawa informed that the company planned to manufacture two models from the Alwar plant. The first model would be a new small car and the second would be a car from their existing line up. With this, he added, Honda aimed at having a strong presence in this segment, which comprised around 75 per cent of the market.

At the proposed plant, HSCI will use ultra-modern technologies that provide the flexibility to produce different models more quickly and efficiently. The new plant will be modeled on the lines of its latest global plants with great emphasis on environment protection and safety. The plant will be operated under the stringent standards of ISO-9001 for quality management and ISO-14001 for environment management.
 
With the setting up of a car plant of Japan's second largest car manufacturer, Rajasthan is now, well on its way to becoming  the auto-hub of India.

Plant Construction Rolling

The construction of the Honda Car Plant has kicked off in the Tapukara Industrial Area, with the Ground-Breaking Ceremony of Honda held on 1 July 2007. The ceremony was attended by Hon'ble Chief Minister of Rajasthan, Smt. Vasundhara Raje; Hon'ble Minister of Economy, Trade & Industry, Japan, Mr Akira Amari; Minister of Industries, Mr. Narpat Singh Rajvi, GoR; Chairman, Honda Motor Company Ltd, Japan, Mr. Satoshi Aoki and President and Chief Executive Officer, HSCI, Masahiro Takedagawa.

Mr. Satoshi Aoki, while addressing the gathering at the ceremony, said that the ground-breaking has started the process for Honda to go into small car production. Mr. Masahiro Takedagawa said the proposed small car would be one that achieves balance in terms of models and cost. The proposed compact car is expected to be launched with local content of around 90 percent.


Auto & Auto-component Majors in Rajasthan:
 
 
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