Honda bikes around the world are now expected to be powered by auto components sourced from India. Honda Motor Company of Japan intends to buy two-wheelers auto components from Indian manufacturers to gain competitive advantage on price without compromising on quality. “India’s scale, pricing and quality advantages convinced Honda that it made huge business sense,” stated a person close to the developments requesting anonymity.

Indian auto component manufacturers produce world-class components that already power four-wheelers in the country. Auto manufacturers like General Motors, Hyundai, Suzuki, Volkswagen and others already source auto components from India to keep their pricing under control.

Honda has two Indian subsidiaries, Honda Motorcycle and Scooters Limited and Hero Honda, which together sell nearly five million two-wheelers in India and hold nearly 40 percent of the market share in the country. Till now Honda had been sourcing its auto components from Thailand just like Toyota. Now Honda intends to make India as its global sourcing hub for its models across the globe. It will be new step from the company to gain competitive advantage in the two-wheelers segment.