Honda component export from India to reach 1500 cr

Honda component export from India to reach 1500 cr

Honda expects its components exports from India to reach around Rs.1,500 crore in 2016-17

The Dollar Business Bureau

Honda, a leading auto maker from Japan, expects that its shipment of components from India could reach Rs.1,500 crore, an increase of 50 percent in the financial year 2016-17, as the company broadens the assortment of products delivered to its global operations from the country.

The Japanese auto maker exports various types of engine parts, forgings and transmissions in addition to other components, manufactured at its plant at Tapukara in Rajasthan, to its global operations.

Raman Kumar Sharma, Senior Vice-President and Director, Honda Cars India said that the company’s components exports from India have been growing every year. During the last financial year, we had shipped components worth around Rs 1,000 crore. This fiscal, we are expecting to export components of around Rs.1,400 crore to Rs.1,500 crore.

Honda has been increasing its component exports from India to new international markets. In 2015, the company started exports to China, Canada and the US, in addition to its existing markets that include Brazil, Indonesia, Japan, Malaysia, Mexico, Philippines, Taiwan, Thailand, Vietnam, and the UK.

Sharma, while briefing about the factors that leads to the increase in exports, said, “The international quality products are available at a low cost in India. When international companies come to the country for selling cars, they find high quality components at such reasonable rates and therefore take the opportunity.”

“Honda India has been playing a major role in providing diesel engine parts to its parent company operations in Indonesia, Turkey and the UK,” he added.

The company’s exports of automobile components have gradually increased in the last few years. In 2013-14, it exported components worth Rs.420 crore. 

Currently, the diesel engines production capacity of Tapukara plant is 3 lakh units per year.

The Dollar Business Bureau - May 06, 2016 12:00 IST