Honda Cars targets Rs 800 crore exports in FY14

Auto major, Honda Cars India limited (HCIL) has set a target to export Rs 800 crore worth of cars and components in 2013-14, said a company official.

“The total exports will comprise of about Rs 600 crore components and about 6,000 cars worth Rs 200 crores in this fiscal,” said Jnaneswar Sen, senior vice president, Honda Cars, who was in the city to flag off the Honda Amaze’s Drive to Discover rally through Bhubaneswar.

In 2012-13, the carmaker had exported Rs 232 crore worth of components and 2,500 cars valued at Rs 85 crore. While cars were mainly exported to countries like Nepal, Bhutan and South Africa, the components were shipped to Europe and South East Asian countries.

HCIL manufacturers cars at its 1,20,000 units per annum plant at Greater Noida and components at its second facility in Tapukara, Rajasthan. It expects to start rolling out cars from Rajasthan facility, built at cost of Rs 2,500 crore, by next fiscal. This plant will have capacity to make 1,20,000 units per annum.

The company sold 40,350 units and posted a cumulative growth of 65 per cent during April-July 2013 as against 24,462 units sold during the same period last year.

“It (growth) was possible due to the recently launched sedan Amaze,” he said.

“Out of the total Amaze customer base, more than 80 per cent are first time Honda buyers,” he added.

In a bid to reduce the waiting period for Honda Amaze, the company is contemplating to start third shift of production at the Greater Noida plant from November.

On the hike in prices of the cars in the wake of falling rupee against the   dollar, the official said, “We are analysing the situation and no decision has been taken in this regard yet.”

HCIL is pinning hopes on the turnaround in car sales in the ensuing festive season and the growth in rural sales on the backdrop of good monsoon.

The company has 154 sales and distribution outlets in 98 cities and plans to strengthen it to 162 outlets in 102 cities during this financial year.

“We are planning to launch about four models in next three years including two diesel models,” he added.

In Odisha, HCIL has sold 341 cars in last four months.