Several Japanese automobile components companies have driven into India in the wake of Honda Motor Co's car venture in the country. At last count, seven of the multinational's vendors had either entered joint ventures or were conducting feasibility studies in the country.
Five of these vendors have already finalised investment plans, aggregating to around Rs 56.5 crore for the first phase, in collaboration with different local partners. All the five Japanese firms have signed supply contracts with Honda's Indian subsidiary, Honda Siel Cars India Ltd.
Two more vendors are currently in advanced stages of negotiations to set up their Indian operations after completing detailed market studies, and are expected to sign similar supply contracts with Honda Siel shortly.
The rush of the auto-ancillary companies into India has been set off by Honda's plan to kick-start its Indian operations with an initial indigenisation level of over 50 per cent in its launch car
