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Honda to build new diesel engine plant in India

ABR Staff Writer Published 18 September 2012

Japanese automobile manufacturer Honda Motor is planning to invest $38.2bn to establish a new diesel engine manufacturing plant in India.

According to the company, the new plant will be located in the northwestern state of Rajasthan and will be starting its operations in 2013.

Honda said the new plant will build 1.5-litre diesel engines of around 1500cc, which will be used in its compact City and Brio models.

Based on the growing demand for diesel engine-powered cars, Honda has chosen India for establishing a new diesel plant.

Currently, Honda is not selling any diesel-powered cars in India and has been struggling with poor sales.