MUMBAI, India — General Motors and Honda this week both announced significant expansions in the number of cars they plan to build in India, as the world's automakers continue to broaden their strategic horizons in Asia-Pacific beyond the still-hot China market.
India continues to blossom with a robust economy, a rising middle class, and a concurrent increase in demand for vehicles. BMW earlier this month announced plans to begin auto assembly in India to tap into that demand, especially among more affluent buyers.
Even as GM prepares to slash thousands more jobs from its U.S. payroll, the automaker said it plans to triple production in India, from about 25,000 to more than 80,000, at its plant in Halol.
Honda said it plans to hike capacity at its Indian plant from 30,000 to 50,000 units in 2006, and expects to double that capacity by 2010. The company makes the compact City and the midsize Accord and is adding production of the new Civic in 2006.
What this means to you: Indian consumers are beginning to display the same insatiable appetite for cars as their counterparts in China and America.
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