Honda's under-utilised Indian plants to serve as export hubs

Could this be a case of desperate times calling for desperate measures? As its sales dwindle in the face of stiff competition & rising petrol prices, Honda Siel has decided to focus on exports instead, by turning India into a major manufacturing and export hub. 

The sharp rise in petrol prices have led to diesel cars currently dominating sales in the Indian car market. However, Honda does not have a single diesel car in its portfolio. Honda's sales have been hit and its market share has shrunk to just over 2%. Offering price cuts on models like the City and Jazz have been of no avail. The well-priced Brio has failed to set the charts on fire too. 

In this glum scenario, the move to focus on exports could help Honda’s cause in India. The rising dollar and India’s cheap labour established this trend, which manufacturers like Hyundai, Maruti Suzuki and Nissan have exploited fruitfully.

Its under-utilised production at the Greater Noida plant can now be ramped up to serve markets like South Africa and also South Asian nations like Nepal, Sri Lanka, Bhutan and Bangladesh. Honda’s Thailand hub has traditionally served most of these markets.

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