Japanese car giant Honda on Tuesday said its Indian subsidiary will start exporting engine components from October to meet the rising demand of the company's small cars in the island nation.
Honda Siel Cars India, the joint venture between the Japanese auto giant and the Siel Group, will be exporting 60,000 sets of crank shafts and connecting rods from its second plant at Tapukara, Rajasthan to Honda Motor Company.
"The Japanese government has announced certain incentives to boost the auto industry and this has led to strong demand in the market there... There has been a capacity constraint at Honda facilities (in Japan) for engine components," Honda Siel Cars India president and CEO Masahiro Takedagawa told reporters.
The company would be exporting 10,000 units of crank shafts and connecting rods every month for the next six months, he added, but declined to put a value for the exports. Due to rupee depreciation Honda would enjoy a cost benefit of 10 per cent on the components sourced from India, Takedagawa said while launching the latest version of the company's luxury sedan 'Civic', priced between Rs 11.8 lakh and Rs 14.13 lakh (ex-showroom, Delhi).
HSCI would now become a part of Honda's pan-Asia supply chain network due to this export, he said, adding "It is a testimony of the quality of products manufactured in India".
