OREANDA-NEWS. Honda Motor Co.'s Indian car-manufacturing unit will invest 25 billion rupees (USD 460.41 million) to expand its factory in the northwestern state of Rajasthan, a senior executive said Tuesday.

The factory, the company's second in India, will have its first assembly line for cars as well as a diesel-engine production line and a forging unit, said Yoshiyuki Matsumoto, managing officer of Honda Motor Co. The company now produces only auto parts at the factory.

The factory at Tapukura will be able to make 120,000 vehicles a year initially. The first car from the plant will roll out next year, Mr. Matsumoto said.

Honda Cars India Ltd. will hire an additional 2,200 people at Tapukara. The plant currently has about 1,600 workers, including about 1,200 who are directly employed by Honda.

Honda currently produces cars at its factory at Greater Noida in the northern state of Uttar Pradesh.