NEW DELHI (Kyodo) -- The Indian subsidiary of Honda Motor Co. said Tuesday it will resume construction of its second auto plant in India, suspended since the 2008-2009 global financial crisis.
Honda Cars India Ltd. aims to complete the plant in the western Indian state of Rajasthan next year, and to boost its annual vehicle production capacity in India to 240,000 vehicles.
The new plant will produce vehicles for sale in the growing Indian market and for export to Africa and Europe.
Honda Cars India President Hironori Kanayama said the plant will produce diesel engine vehicles to expand Honda's product lineup in India. "We will meet customers' diversifying demand."
Honda will invest a total 25 billion rupees (about 42.7 billion yen) on the assembly plant and adjacent diesel engine and component factories.
The Honda subsidiary plans to employ 2,200 workers at the Rajasthan plant.