Honda is contemplating to double sourcing of auto components like engine parts from India during current financial year. This would involve an investment of a staggering Rs 800 crore. The Japanese auto maker is also mulling to increase exports of India made cars to overseas markets. The confirmation regarding the same came from Jnaneswar Sen, HCIL Senior Vice President (Marketing and Sales). In last financial year, Honda generated revenue of Rs 420 crore from exports of components.
Honda exports various component parts from India to other subsidiaries of Honda scattered across the globe in countries like South East Asia, Latin America and UK. The auto components including crank shaft, cylinder head and transmission are produced at the company’s manufacturing unit located in Tapukara, Rajasthan.
Senior Vice President and Director (Sales and Marketing), HCIL, Shigeru Yamazaki confirmed Honda’s plan to double exports and said: "We are looking to double car exports from India during this financial year. It should cross 10,000 units in 2014-15."
Honda India exports Brio hatchback and Amaze compact sedan to South Africa and neighbouring countries like Nepal and Bhutan. A total of 5,500 units of Brio and Amaze were shipped to the forenamed countries in last financial year. The newly launched City was also exported to South Africa. Company officials also hinted at the possibility of exporting Mobilio MPV to other markets. Launch of Mobilio is due to happen during the third week of July in India.
Depending on the popularity of the MPV in India, Honda could think of exporting it to other auto markets. Honda had also said that it would increase production capacity at the Tapukara plant by conducting second production shift in coming time owing to increase in sales from the past couple of months. By 2017, Honda eyes increasing global sales volume to 60 lakh units for which it will be required to enhance production capacity at its manufacturing units within coming few years.
