In an important development, Honda India on Tuesday announced to invest Rs 1100 crore for setting up a plant in Gujarat to manufacture up to 12 lakh two-wheelers.
In what the Gujarat Government said was the beginning of implementation of the Prime Minister’s “Make-in-India” appeal, the Haryana-based Honda Motorcycle and Scooter India Pvt Ltd (HMSI) signed a State Support Agreement (SSA) with the State Government here, in the presence of Chief Minister Anandiben Patel.
The Honda plant will be located near Vitthalapur in Ahmedabad district. It is expected to create jobs for 2,000 people.
Additional Chief Secretary (Industries) D J Pandian and Honda’s President and CEO Koito Maramutsi signed the SSA on behalf of the Gujarat Government and the auto major, respectively.
Applauding this decision of Honda to set foot in Gujarat, the Chief Minister said this would help make Gujarat an “automobile hub” and will be in accordance with Prime Minister Narendra Modi’s recent appeal inviting global investors to “Make in India” the products they need.
The Vitthalapur-Sanand-Becharaji region is fast emerging as an auto hub, she said.
Industry Minister Saurabh Patel said after Tata Motors, the others who anchored in Gujarat included Ford India and Maruti Suzuki. They are all four-wheeler manufacturers. Now with Honda coming, the state would also boast of making two-wheelers.
Honda is expected to buy the land it requires at market rates, sources said.