Honda plans to make India export base for manual transmissions

Following in the footsteps of other automakers who plan to make India their manufacturing and export base, Honda Car India, now seeks to export manual transmission gearboxes from India.

Honda Mobilio sales targetThese exports will be mainly to countries across Asia and to Latin America and the company is in the process of drawing up plans to enhance capacities at their plants in Tapukara, Rajasthan and Greater Noida, Uttar Pradesh. Honda Motors announced these extensive export plans at the recent launch of Honda Mobilio MPV where the company desires to take advantage of India’s lower cost of manufacturing and sourcing.

Honda Motors will be using their plant in Rajasthan for manufacture of manual gears for exports and have also identified other critical parts which will be exported from India. An amount of INR 3,500 crores has been invested in the second plant in Tapukara to boost manufacture of engines, axles and other components to cater to these extensive export plans.

Honda Motors is seeing increased traction in India following launch of the Honda Amaze and new City sedan. Sales during the April-June quarter has seen a 40% increase to 40,718 units. The new Honda Mobilio seven seater MPV was also launched on Wednesday in a price range of INR 6.49 lakhs to INR 10.86 lakhs. With pre launch bookings opening prior to launch, Honda has already received 5,865 bookings (post launch figure is over 6,500).

Honda Motors also sells the Mobilio MPV in Japan and Indonesia. Sales in Indonesia have reached 46,000 units and the company hopes to see the same performance in India as well with an aim of total annual sales of 3 lakh units by 2017.