Unlike its Japanese rivals, Honda has no plans to export its compact car, code-named 2CV. A variant of the car will be produced and sold in Thailand, also in 2011, where Honda will use its ample capacity to export to neighbouring countries.
But Honda will embark on a different kind of experiment.
With the addition of the 2CV, Honda's 100,000-units-a-year factory near Delhi will produce a fifth model on its sole assembly line -- a first for Honda, known for being among the most flexible manufacturers in the industry.
"Going from four to five is a huge step, and impossibly difficult if you're familiar with the production process," said Yuji Matsuzaki, director of manufacturing at Honda's local unit.
"In that sense, India is going to be the stage for a very important undertaking."
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