Honda to Expand Capacity in India

Honda Motor Co. is investing 9.7 billion rupees ($154 million) in India to meet increasing demand for its cars and motorcycles.

The company says it will spend 3.8 billion rupees ($61 million) to add 60,000 units of annual capacity at its factory in Tapukara, Rajasthan. The plant currently has capacity to make a combined 120,000 Amaze and City small cars.

Honda will use 5.9 billion rupees to expand a motorcycle factory in Narsapura, Karnataka. The facility the largest of Honda's three two-wheeler plants in India currently has capacity to make 1.8 million motorcycles per year.

Honda says both projects will be completed by the end of next year.