Japanese automotive giant Honda Motors is all set to invest ₹ 500 crore in R&D unit to develop affordable cars for India. They are in the initial stage of setting up a subsidiary in India that will specifically concentrate on developing affordable and fuel efficient cars for the local market. This subsidiary would also help the more use of locally-manufacured components in already existing vehicles offered by Honda which will eventually make them more affordable as well.
In January 2014, Honda became the fourth largest car manufacturer.It sold 15,714 units.The journey from a premium level car manufacturer to mass market manufacturing has made Honda take strategic steps towards an R&D centre dedicated for the budget vehicles market.
Honda Motors already have a local R&D centre and the proposed new R&D centre for affordable cars will be carved out of its existing R&D setup. This particular unit is likely to come at an initial investment of a whopping INR 500 crore.
A few days ago we also reported that Honda is developing an entry level volume car which is codenamed as ‘World A-Entry’. This car will use Honda’s new ‘GSP2′ platform & tentatively would be priced in the INR 3-4 lakh range.
Now that we mention it, let’s also understand what is this platform by Honda? The ‘GSP2′ platform stands for Global Services Platform and this is acompletely new modular platform. The GSP platform lets employees in search of information access a range of applications from other Honda companies around the world. With this benefit, for example a user can use the Service-Oriented Architecture-based system to investigate warranty claims check and receive response from worldwide Honda locations in few seconds. The company will get commercial benefits of around $80,000 a year due to GSP platform by increasing customer satisfaction, boosting common application production and lowering business cost.
Meanwhile Honda’s second plant in India is now functional. Its is situated at Tapukara in Rajasthan.The Tapukara plant is spread over 450 acres and was inaugurated in September 2008 in its first phase. Honda has invested over Rs 3,500 crores in the Tapukara plant till date.This plant is dedicated for Amaze mass production and has a capacity of 60,000 units per annum.
We wish Honda all the very best and look forward to getting more new products from them soon. Keep reading AutoColumn for more.