Honda to ramp up exports from India
Honda Cars India Limited has ambitious plans for the fiscal year 2014–15 including doubling their sourcing of auto components, like engine parts, from India to over Rs 800 crore. The export of components in 2013–14 generated Rs 420 crore for the Japanese auto giant. HCIL Senior Vice President (Marketing and Sales) Jnaneswar Sen said, “We are targeting to increase our component exports and it will be nearly doubled. It will cross Rs 800 crore during the current fiscal.”
Honda’s Tapukara plant in Rajasthan currently produces essential engine parts like the crank shaft, cylinder heads and transmission which are exported to Honda’s subsidiaries in South East Asia, Latin America and the UK. On the subject of exporting cars, Shigeru Yamazaki, Senior Vice President and Director (Sales and Marketing), HCIL claimed, “We are looking to double car exports from India during this financial year. It should cross 10,000 units in 2014–15.”
The popularity of the Brio, Amaze and City has led to over 5,500 units being exported to South Africa, Bhutan and Nepal. The soon-to-be-launched Mobilio MPV may also be exported from India though Yamazaki confirmed that it will depend on the demand for the MPV. He added that their primary focus will be India.
Besides HCIL’s push concerning exports, the manufacturer will increase output by starting a second shift at the Tapukara plant, enabling Honda to meet its target of an almost 50 per cent jump in sales to 2 lakh units in 2014–15. With the addition of the company’s existing facility at Greater Noida, the total production capacity will increase by 30 per cent to 2.4 lakh units per annum.
