Honda plans to build diesel engine plant in India

According to corporate sources from Honda Motor Co., the company is planning to build a diesel engine manufacturing plant in India within its existing production site in the northwestern state of Rajasthan. The company plans to invest about RMB30 billion (US$4.79 billion) to build the engine plant for diesel engines of around 1500cc, which will be used for its compact City and Brio models. Diesel-powered cars are particularly popular in India, where diesel fuel costs less than gasoline because of government price controls. Honda has been experiencing sluggish car sales in this fast-growing market. Other automakers, including Suzuki Motor Corp., the largest automaker in India, have placed emphasis on supplying the market with diesel engine-powered cars. (
September 16, 2012)