Friday 6 May 2016

Component Export From India To Touch Rs 1,500 Cr In Fy17: Honda

Japanese auto major Honda expects its components exports from India to jump by up to 50 per cent to around Rs 1,500 crore in the current fiscal as it widens the basket of products supplied to its global operations from here.

The company, which has identified India as a global hub for components, exports different engine parts, forgings and transmissions along with others, produced at its Tapukara plant in Rajasthan to a host of global operations.

“Our exports of components from India has been growing each year. Last fiscal, we did around Rs 1,000 crore and this year we are looking at exporting components worth around Rs 1,400 crore to Rs 1,500 crore,” Honda Cars India Senior Vice-President and Director Raman Kumar Sharma said here.

The company has been expanding to new markets for component exports from India. Last year, it started exporting to the US, China and Canada to add to the existing markets, including Japan, Thailand, Malaysia, Indonesia, Philippines, Taiwan, Vietnam, the UK, Brazil and Mexico.

“We also export components of the Jazz, which is a global model,” he said.

Explaining factors behind the increase of exports from India, Sharma said: “There is availability of global quality products at a low cost. When global companies come to India to sell cars, they suddenly find world class components at such competitive prices and hence take the opportunity.”

Honda’s exports of auto components from India has been gradually increasing. In 2013-14, its component exports had a turnover of Rs 420 crore.

Sharma said Honda India has also been playing a key role in supplying diesel engine parts the Japanese parent’s operations in the UK, Turkey and Indonesia.

At present, Tapukara plant has an annual production capacity of 3 lakh units of diesel engines per annum.

 

Source:.financialexpress.com



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