| In order to encourage greater consumer investment in | | | | plant, but it will be selected in coming months, and |
| the technology, Honda USA Vice-President, John | | | | construction is to begin later this year. That plant will |
| Mendel, has called for tax-credit schemes aimed at | | | | begin operating in the first half of 2009 with an initial |
| extending hybrid car drivers to buyers of fuel | | | | capacity of 50,000 cars a year and Honda plans to |
| cell-powered cars. | | | | increase it gradually. The company plans to find a site |
| He said in an interview early this week that providing | | | | large enough to produce 200,000 cars annually. |
| further tax breaks for hybrid car buyers would not be | | | | Company officials say they plan to invite affiliated |
| the right move, as hybrid serve as the bridge | | | | parts vendors to set up near the new factory with a |
| technology to something else. Instead, he further | | | | view to boosting the locally procured content of the |
| argued the benefits should be provided to fuel cell car | | | | vehicles assembled there. |
| drivers, as fuel cell technology continues to "push the | | | | Honda's first plant that assembles Accord and Civic |
| envelope" in the development of energy-saving | | | | sedans in India has the production capacity of 50,000 |
| technology, and should therefore be encouraged. | | | | cars. The company has announced to increase the |
| Mendel's comments follow Toyota's appeal to the US | | | | production capacity to reach 100,000 cars by the end |
| government to extend the current tax-credit scheme | | | | of 2007 and to even increase it to 150,000 vehicles by |
| for hybrid drivers. | | | | 2010. |
| Meanwhile, Asian stocks had their first back- to-back | | | | Volkswagen AG, General Motors Corp. and other |
| advance this year after U.S. retail sales was climbed | | | | automakers are starting up production or building more |
| by the most in five months and machinery orders in | | | | factories in India, Asia's fourth-biggest automobile |
| Japan rose. Honda Motor Co. together with Samsung | | | | market, where demand for vehicles is growing with an |
| Electronics Co. led gains by exporters. | | | | expanding economy. Automakers last year announced |
| Another proof of Honda's rising in Asia is its plan to | | | | a combined $5 billion of investments in new factories in |
| build its second plant in India, the continent's | | | | India by 2012. |
| fourth-biggest economy. | | | | India's economy, Asia's fourth-largest, grew 9.1 percent |
| N.K. Goila, the vice president of Honda Siel Cars India, | | | | in the half-year ended Sept. 30, the fastest |
| the country's company unit said last January 9 that | | | | semi-annual pace in 15 years, boosting demand for |
| Honda may spend 20 billion rupees ($450 million) to set | | | | cars. Northern and eastern India account for 45 |
| up the second car factory in Rajasthan. | | | | percent of the company's sales, the statement said. |
| Honda has decided to build the second plant because | | | | India's car market may triple to 3 million units annually |
| the existing one in Uttar Pradesh is not large enough to | | | | by 2015, according to the Society of Indian Automobile |
| accommodate new facilities necessary to keep pace | | | | Manufacturers. That has attracted manufacturers, |
| with the ongoing demand growth. | | | | including Suzuki Motor Corp., Hyundai Motor Co. and |
| According to Honda spokeswoman Yasuko Matsuura, | | | | DaimlerChrysler AG. Last year, Renault SA, France's |
| the Tokyo-based manufacturer of cars and | | | | second-largest carmaker, said it will open a factory in |
| motorcycles will locate the plant in the northwestern | | | | India along with Mahindra & Mahindra. Renault's affiliate |
| state of Rajasthan, northwestern India. She continued | | | | Nissan Motor Co. may also join. |
| that it has yet to decide on the exact site of the new | | | | Honda is also maker of quality Honda tie rods. |