Honda Cars India to double its exports as well as sourcing from India

Honda Cars India is looking to increase its parts sourcing to double the amount. The Japanese car major is contemplating to significantly increase its auto components sourcing including engine parts from India in this ongoing fiscal. This will involve a massive investment of around Rs. 800 crore. On the other hand, Honda is also planning to increase the exports of its India made cars to the international car markets, again double the current amount.

Honda Cars India’s Senior Vice President of Marketing and Sales division, Mr. Jnaneswar Sen confirmed on this entire development and the company’s plans. In the previous financial year, Honda had got the revenue of Rs. 420 crore from the company’s exports of car components.

Honda Cars India exports a number of car components from its Indian facilities to several other Honda subsidiaries across the world, which includes the countries such as South East Asia, UK and Latin America. The various auto components that Honda India exports includes cylinder head, crank shaft as well as transmission. These car components are produced at the car maker’s manufacturing facility located in Tapukara, Rajasthan.

Honda India’s Senior Vice President and Director of Sales and Marketing, Mr. Shigeru Yamazaki has also confirmed the company’s plans to double its exports of the India made cars by saying that Honda India is looking to double the car exports from India in this current financial year. The targeted exports are over 10,000 vehicles in the 2014-15 fiscal.

Honda India currently exports only the popular Brio hatchback and the outstandingly successful Amaze compact sedan to several car markets such as South Africa Bhutan and Nepal. A total number of 5,500 units of the Brio as well as Amaze were exported to these car markets in the previous financial year. The new City sedan which was launched in the month of January this year has been also getting exported to the car market of South Africa. Some other company officials have also hinted at the possibility of the company’s plan at exporting the upcoming Mobilio MPV exports to other markets. The new Honda Mobilio is scheduled for its Indian launch in the third week of July this year, post which the India made Mobilio might also join Honda India’s export list.

It is thought that Honda India will take the decision of exporting the Mobilio to the other auto markets depending on the vehicle’s popularity in the domestic market. Honda Cars India had previously also announced that it will increase the production capacity of its new Tapukara production facility by starting a second manufacturing shift soon enough, keeping in mind with its increasing car sales and future demands of its cars.

By the year 2017, Honda Motor also plans to increase its global sales volume to 60 lakh vehicles. In order to achieve this sales goal the company will be requiring increasing its production capacity at its manufacturing plants in the coming years.

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