Honda and Toyota develop India as a major parts export hub

Japanese automobile giants Honda Motor Company and Toyota Motor Corporation are both working on positioning their operations in India as major parts exporters after the two auto giants have introduced their India-specific models: Honda’s Brio and Toyota’s Etios.
Honda Cars India (HCI) expects its revenues from component exports to increase to Rs471 crore ((US$87.5 million) this year due to high demand for Brio parts in Thailand. The company also exports engine and critical components for the Brio, Jazz and City to several countries including Argentina, Brazil, Indonesia, Malaysia, Japan, Philippines, Taiwan, Thailand and the United Kingdom. In India, Honda has a vendor base of 150 suppliers.
Toyota on the other hand, is scheduled to ship transmissions for the Etios and Liva to Brazil in January. Early next year, the company is scheduled to begin supplying transmissions from Toyota Kirloskar Auto Parts (TKAP) to its Brazilian affiliate. “The Etios has opened opportunities for vendors in India. Transmission for the models will be supplied from India to Brazil, where the Etios range has been introduced recently,” said Sandeep Singh, TKAP deputy managing director. TKAP commissioned a Rs500 crore (US$92.9 million) gasoline engine assembly plant and a transmission production facility in Karnataka, a state in South West India. (December 15, 2012)