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Journalism of Courage
Underlining India’s potential in the global automobile sector, Japanese giant Honda Motor Company today announced investment of Rs 3,000 crore over the next ten years towards capacity expansion and diversification of product portfolio in the country.
Honda’s top brass ranked India higher than China as a potential market, while highlighting that both countries have similar rates of growth and population. ‘‘In future, India will be a more important market for us than China. Both the countries have similar rate of growth but India’s being a democracy gives it an edge,’’ said Takeo Fukui, Honda Motor Co President and CEO.
While listing the company’s target for 2010, Fukui added that the company will venture into the small-car segment in the near future. Honda plans to ramp up its production capacity in Honda SIEL Cars India from the existing 50,000 units per annum to 100,000 units per annum by 2007.
The company hopes to further expand capacity to 150,000 cars per annum by 2010 when the overall Indian four wheeler segment is slated to hit 2 million cars per annum. For the current year, the company is targeting a 48 per cent increase in car sales to 62,000 units with the launch of its third production car—Honda Civic.
‘‘Our plan for the small car is not concrete yet but investigation for the new model is on. We will also set up a new production facility to manufacture the model as our capacity level at the existing facility will be fully utilised by then,’’ said President and CEO HSCI and Head South West Asia Honda Motor Co. Masahiro Takedagawa.
Honda has planned large capacity expansions in the two wheeler segment as well. The company accounts for 3.6 million units of the total 7 million units in the two-wheeler segment today and plans to hike capacity to 4.3 million units this year and 5.2 million units next year.
‘‘Our estimates suggest that 12 million motorcycles will be sold in the country by 2010 and we intend to remain the dominant player in the market with a capacity of 7-7.5 million units per annum by that time,’’ Fukui said.
Honda will also set up an auto component company Honda Motor India (Pvt) Ltd which will deal in spare parts and help consolidate requirements of its existing group companies—HSCI, HMSI, Hero Honda Motors Ltd and Honda Siel Power Products Ltd.
Renault mulls tie-up with General Motors
Marcel Michelson
An audacious plan for a tie-up between General Motors Corp and Renault that would create a $100 billion global auto giant was set to come before the board of the French carmaker late on Monday. GM’s most high-profile investor, billionaire Kirk Kerkorian, urged the US company last week to consider a three-way partnership with Renault and its partner Nissan.
Renault and Nissan CEO Carlos Ghosn has said the board and management of GM would need to fully support the project before any study of the plan could take place. Nissan said after its board meeting that its directors had approved exploratory talks and charged Ghosn with leading the discussions. — Reuters
