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While it registered a decline in sales growth last year, Honda Cars (India) has been able to register over 40% growth in exports of auto components from India during the same period.
Talking exclusively to Business Standard, Raman Kumar Sharma, director and senior vice-president of Honda Cars (India) Limited, said the surge in demand for auto components from India for Honda cars made in other parts of the world is expected to last longer and we expect to export auto components worth Rs 15,000 crore from India in 2016-17.
"We exported components worth Rs 7000 crore in FY2014-15, Rs 10,000 crore in FY2015-16 from India. These components are manufactured at the Bhiwadi plant and are also sourced from small vendors. Due to sufficient capacities at the Bhiwadi plant, no fresh investments are required to meet demand,” he added.
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Commenting on decline in sales, Sharma said wholesale growth was down by 2% but the retail growth figures mobilized by independent studies reckoned it at 8%. He endorsed that changing preference for petrol over diesel variant by consumers dent demand. "Inventory correction is going on and we are in the process of upgrading the supplies from our vendors for the components required for petrol variants. We have a capacity to manufacture 300,000 vehicles every year and our current average annual sale is 200,000 vehicles. A sudden change in policy did impact the sales but have carved our strategies to face such situations with higher efficiency.”
Honda sold 1,89,000 passenger cars in FY2014-15 and 1,92,000 passenger cars in 2015-16 in the Indian market.
By September-October this year, Honda will roll out new Honda Accord Hybrid that would be run on petrol or electrically-charged battery. This new model of our flagship brand will strengthen our presence in premium segment of Rs 20 lakh and above, said Sharma.
Fourth quarter results have kindled hopes of higher growth this year and a favorable monsoon may drive up demand in FY2016-17. Sharma was in Chandigarh to launch the new Honda BR-V in Punjab market.
