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    Honda to make India an export hub for critical components

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    Ranjan R. Bhat

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    Honda to make India an export hub for critical components

    Honda has announced that it is planning to make India an export hub to supply critical components to emerging markets in Asia and Latin America. This was revealed by Mr. Yoshiyuki Matsumoto, managing officer and representative of development, purchasing and production, Honda, Asia and Oceania region, who also added that they were putting a long-term parts sourcing plan in place which would start with manual transmissions.

    Earlier this year, Honda revealed that they were planning to increase the production capacity at the Tapukara facility with the aim of doubling the sourcing of automobile components and engines for its foreign markets. The Tapukara facility manufactures engines, axles and other auto components that are used for cars produced in India as well as for the export market in small numbers. However, this announcement now reveals that the export strategy will make the Indian subsidiary one of the company’s biggest export hubs.

    "Honda has businesses across the globe and we are looking at export of critical parts from India. Going ahead, we plan India as one of the major bases to ship manual transmissions for different class of passenger vehicles across different markets, which would help us develop and leverage a long-term competitive sourcing base our of India," Matsumoto said.

    Honda aims to breach the six million mark by March 2017 for vehicles sold globally of which, the Asia Oceanic region is expected to make up 1.2 million units. Reducing production costs is one of the most obvious ways of increasing profits and Honda plans to cash in on India’s low-cost labour and manufacturing techniques to fuel its growth. Hyundai, Nissan and Renault are other manufacturers who have been taking advantage of the country’s prowess in cheap and efficient manufacturing to export cars to other global markets. 

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