Honda is planning to focus on developing diesel engines and compact cars to meet the requirements of the Indian automobile industry. According to Mr. Yasuhisa Arai, Honda R&D Co (Automobile R&D Center) Managing Officer, Chief Officer (Development Operations), the company has taken into account the petrol price hike in India and thus is engaged in the development of diesel engine cars.
Mr. Arai added that the India market is demanding more of diesel cars and the company is planning along those lines. He said that the company’s focus on compact cars is directed at driving volumes. According to him, the company is witnessing limited opportunities for large size cars in India.
The company is trying to procure the auto parts for its manufacturing process in India itself and has managed to localize 80 percent of its products so far. However, it wants to increase the percentage to reduce costs.