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The Japanese automotive major Honda, which recently increased its manufacturing capability in the country, expects to step up exports during the year to South Africa and other markets.

Honda Cars India Limited, which now has two manufacturing units, one near Greater Noida and another in Tapukara in Rajasthan, together with an installed capacity of 2,40,000, sees exports crossing 9,000 vehicles this year, up from 6,000 it closed last year.

Shigeru Yamazaki, Senior Vice president and Director, Honda Cars India Limited, said the company has managed to increase the localisation level in India to 87 per cent in the case of diesel vehicles and 93 per cent for petrol cars.

“With two manufacturing facilities, depending upon the demand from other markets, we hope to further increase exports. However, the prime focus is on catering to the domestic market,” he said.

Addressing a press conference here, Yamazaki said, “The company had a growth of 83 per cent last year and 14 per cent so far this year and we hope to sustain this during the year with the launch of Mobilio in a segment where the company was not present in the country in the past.”

He said the company expects to achieve a sales target of about 3,00,000 vehicles in a couple of years. The launch of Brio hatch, Amaze and City sedans have created the excitement in the market and Mobilio, the seven-seater multi-purpose vehicle, is expected to sustain the growth momentum. It has received over 10,000 bookings so far. The company expects to roll out new Jazz early next year.

The Japanese executive said the company has a wide range of successful larger MPVs in the global market. The launch of some these models would depend upon the demand for such vehicles and affordability.

Referring to the country's automotive sector, he said, “The sector was now coming out of a phase of slow growth. There are signs that the sector will do better during the year. However, it is tough to come out with numbers and projections on the sector growth.”

Source : thehindubusinessline.com

Posted on : 21 Nov,2024 | News Source : ABNews