UPDATE 1-Honda Motor to invest $650 mln in India over 10 years http://today.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?view=CN&storyID=2006-07-03T123753Z_01_DEL112623_RTRIDST_0_AUTOS-INDIA-HONDA-UPDATE-1.XML&rpc=66
Mon Jul 3, 2006
NEW DELHI, July 3 (Reuters) - Japan's Honda Motor Co. Ltd. (7267.T: Quote, Profile, Research) will invest about 30 billion rupees ($650 million) over 10 years in India, and double annual car production capacity by the end of 2007, Chief Executive Takeo Fukui said on Monday.
The company is bullish on growth prospects for the car market in Asia's third-largest economy, Fukui said, adding Honda's sales in the country were expected to rise by 48 percent year on year to 62,000 units by the end of 2006.
Production capacity would be boosted to 100,000 units by the end of next year.
"Demand is expected to increase further to 150,000 units by 2010," Fukui told a news conference in the Indian capital.
Honda had "begun investigations" to launch a new model for India which would be smaller than its City ZX model sedan, a statement said.
The company plans to launch its Civic model on Tuesday.
Honda operates four businesses in India -- it has a 26 percent stake in the country's top bike maker Hero Honda and controls 99.9 percent of Honda SIEL Cars India Ltd.
A wholly-owned subsidiary makes gearless scooters and Honda also sells generators in India.
Fukui said its Indian partner in Honda SIEL would be allowed to raise its stake to up to 5 percent from the current level of 0.1 percent. ($1=45.87 rupees)
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