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India to be Honda’s export hub

Japanese auto maker, Honda, plans to make India its export hub. Honda plans to make India its manufacturing base for supply of manual transmissions to emerging markets. This decision is being made keeping in mind India’s low-cost manufacturing advantage.

Honda plans to put its Rajasthan facility to use for this purpose. Honda has already identified critical parts which will be manufactured in India and shipped overseas. The company invested about Rs. 3,500 crore last year in its Tapukara facility in Rajasthan. This facility will manufacture engines, axles etc. In return, this will also provide better profitability for the local facility. Honda has another plant located in Greater Noida, UP.

By 2017, Honda has set up a target to sell 6 million vehicles globally, out of which, 1.2 million units are expected to be sold in the Asia Oceania region which include India, Thailand, Indonesia etc.

Source – ET Auto