Japanese carmaker Honda is planing to nearly double the sourcing of auto components, including engine parts from India to over Rs 800 crore during the financial year 2014-15. The automaker’s wholly-owned subsidiary Honda Cars India Ltd (HCIL) is also mulling to double the exports of the vehicles from the country to other parts of the world.
“We are targeting to increase our component exports and it will be nearly doubled. It will cross Rs 800 crore during the current fiscal.” Jnaneswar Sen, senior vice president of marketing and sales said. Talking about vehicle exports, HCIL senior vice president and director of sales and marketing, Shigeru Yamazaki said: "We are looking to double car exports from India during this financial year. It should cross 10,000 units in 2014-15."
Honda Cars India Ltd exports different components, including crank shaft, cylinder heads and transmission, from its manufacturing unit at Tapukara in Rajasthan to other global subsidiaries of Honda in markets such as South East Asia, Latin America and the UK. In terms of vehicle exports, the company had shipped around 5,500 units last fiscal to mainly South Africa, besides Nepal and Bhutan. The exports included, the Brio hatchback and the Amaze mid-sized sedan.
Last week, Honda Cars India had announced that it would increase the output from its Tapukara plant by starting a second production shift in the next seven to eight months to help meet its target of an almost 50 per cent jump in sales to 2 lakh units in 2014-15.