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Honda plans to make India an export hub for manual gearbox

Honda plans to make India an export hub for manual gearbox

Snapshot: Honda’s new plant in Tapukara, Rajasthan will be utilised to manufacture & supply manual gears to overseas markets.

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Honda Motor Corporation is planning to make India its manufacturing base for the supply for manual transmission gearbox to emerging markets across Asia and Latin America. Recently, a number of auto majors have drawn up plants to make India as their manufacturing base to take advantage of the low cost of production in the country as compared to other global markets. The said development was brought to light on the sidelines at the launch of the Mobilio MPV that got underway in the country yesterday. 

Honda Cars India’s new facility in Rajasthan will be used to manufacture and supply of manual gears to its overseer facilities. Yoshiyuki Matsumoto, managing officer of Honda Motor and representative of development, purchasing and production in Asia and Oceania region said, “Honda has businesses across the globe and we are looking at export of critical parts from India. Going ahead, we plan India as one of the major bases to ship manual transmissions for different class of passenger vehicles across different markets, which would help us develop and leverage a longterm competitive sourcing base out of India.”

To take advantage of India’s low cost of production, the Japanese carmaker has reported, to have identified several critical parts that will be manufactured in India and shipped overseas. The company invested about Rs 3,500 crore in 2013 in its second plant at Tapukara in Rajasthan to make engines, axles and other auto components that are being exported to various markets across the globe. The said move has resulted into huge costs savings, while also improving the local arm’s profitability. 

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