Japanese automobile manufacturers Honda and Toyota are contemplating making India an auto component export hub and plan to develop their domestic operations in India accordingly. India specific car models such as the Brio small hatchback by Honda and the Etios Liva hatchback and Etios sedan by Toyota are already being manufacturer locally and the sourcing of components is also partially localized.
Amid low car sales in the Indian domestic car industry, Honda India, the wholly owned subsidiary of Honda expects to earn revenues of Rs 471 crore from component exports in the fiscal 2012-13. These expectations are based on the sales of the Brio small car in Thailand.
Similarly, Toyota will also commence exports of transmissions for the Etios and the Etios Liva to Brazil, where the cars are exported from India.
According to a senior official at Honda India, the carmaker is exporting about 56 engine and body components of the Brio in addition to some parts for the Jazz premium hatchback and the City mid-size sedan. These components are manufacturer locally at Tapukara (Rajasthan). The official added that the revenue from exports will also help in offsetting the adverse currency fluctuations.