The Japanese auto major, Honda Motor Corporation will be commencing its export operations of 2 wheelers from next year from India. The company sees India as a future global hub particularly for the volume segment models. The company is also developing a global procurement center for its large sized motorcycles and commuter bikes in India to grow its export operations including components. Last year, Honda Motorcycle and Scooters India decided to part ways with its long standing partner Hero Group. Hero Group bought the Japanese firm’s entire stake of 26% for Rs. 3841.83 crores.
“We will soon start exporting from India… Earlier some of the motorcycle models were being produced by Hero. Now we would like to do it ourselves by next year from the new plant,” Honda Motor Company COO (Motorcycle Operations) Tatsuhiro Oyama told reporters on the sidelines of Tokyo Motor Show
Honda currently sells the entry level CB Twister (110cc) and the CB Shine and the CBF Stunner (both 125 cc) in the mass market motorcycle category. The company has 2 plants in India with a total manufacturing capacity of about 22 lakhs per year. The company is currently setting up a new production plant in Bengaluru. After the commencement of this plant, the company expects to have a total capacity of producing 40 lakh per year by first half of 2013. From this plant, the company has plans to export the bikes to neighbouring countries like Nepal and Bangladesh apart from selling them in the Indian market. Later on, the company will also be exporting to countries like South America, South Africa and other ASEAN countries. The company will also be developing India as a global base for the export operations and also developing a new R&D center to facilitate the development of products for the global markets.