Honda India to Build Cars for South Asia and South African Markets

Japanese car maker’s Indian subsidiary Honda Siel Cars India (HSCI) is planning to use Indian facilities to manufacture cars for South Asian countries. The cars will be exported to Africa and some other global markets as well. Unlike Honda’s trend of locally manufacturing its products in the major markets, it will roll out its flagship sedan and other cars to South Afria, which will be built in India.

Speaking to ET, a sr. executive of the company said that they wish to make India a hub of manufacturing due to India’s cost competitiveness and to use the spare capacity. Indian manufacturing operations will emerge as an alternative to Thailand, that exports various cars to Africa and other markets. “We keep exploring new markets for growth opportunities. We currently export some models to the neighboring markets like Nepal, Sri Lanka and Bangladesh. However, we do not have anything specific to share at this moment,” a company spokeswomen said.

Indian automotive market currently exports over 5-lakh cars every year, where Hyundai, Maruti Suzuki and Nissan Motors are the leading players in exports, Honda only sells approximately 100 cars to the neighbouring countries including Nepal, Bhutan, Bangladesh and Sri Lanka.