Honda Siel Cars India (HSCI), an arm of Honda Motor Corporation, Japan, is exploring the possibility of adding a new plant to boost capacity.

The company plans to launch a small car just before next Diwali. HSCI, the third-largest Japanese automotive brand in India after Suzuki and Toyota Kirloskar, is gearing up to launch the car at the 27th Thailand International Motor Expo 2010, starting November 30. It had showcased the concept car at this year's Delhi Auto Expo.

HSCI is capable of expanding the capacity of its Noida plant to 100,000 units a year from 60,000. But Tatsuya Natsume, director (marketing) of HSCI, said, "We have some limited room to expand after hitting 100,000 units a year."

"We will take a decision on whether to add capacity at the existing plant or set up a new plant after looking at the response for the small car."