India to be major manufacturing hub for Honda: Exports in Asia and Africa
India will be the company’s main manufacturing hub primarily due to spare capacity on hand and the fact that it is more cost effective. The Indian manufacturing plant located in Greater Noida will supplement Honda City cars to African countries while the Thailand set up will cater to other global markets. Besides markets of Africa, the company is also looking to markets of Nepal, Sri Lanka and Bangladesh from where they are expecting demand to increase in the coming months.
Currently Honda only sells about 100 City and smaller models in these countries where they will soon be launching the Honda Brio. Honda Brio was launched in Indian markets at the end of 2011. It has received overwhelming response and it is expected that the same response will be seen in other Asian markets as well. Currently Honda has excess capacity of auto manufacturing in India. It is expected that this excess capacity instead of resulting in piling stock, will be used for exports to other Asian, and African countries.