Honda two-wheelers to set up a new business vertical to oversee exports

Honda two-wheelers announced its new strategy regarding exports to global markets. The new business vertical established is in line with the Make-in-India initiative by the Indian government.

Honda two-wheelers has announced that the company has set up a new business vertical to spearhead its exports from India. It also stated that the vertical will bring together more than 100 associates, including quality, purchase, development, homologations, manufacturing, and logistics under one roof.

Honda will manufacture new models of scooters and motorcycles at its Manesar plant under the Make-in-India initiative and will export to its global markets. As per the homologation norms of a country, Honda will tweak and export two-wheelers.

Picture of the Honda CB350 RS for representation purpose only

Motorcycle (and car) manufacturers find it easier to source raw-material for production at a more affordable cost in the Indian market than in international markets. And the manufactured products have a respectable built quality; however, there is always room for manufacturers to improve and enhance the quality of their products. Therefore, many motorcycle (and car) companies have made India its manufacturing hub for global markets.

Honda’s expansion of the Make-in-India move could also be a result of BS6 emission norms being at par with the Euro 5 emission norms. Where, the company can locally produce BS6 compliant two-wheelers and sell them in both Indian and Euro 5 regulated international markets. Honda two-wheelers’ key export markets are Southeast Asia, SAARC, Japan, the Middle East, Latin, Central America, and Europe.

Honda began exporting two-wheelers from India back in 2001. The first two-wheeler to be exported from India was the Activa scooter. The company crossed the 10 lakh unit mark in exports back in 2015. This move from the Japanese manufacturer could help it strengthen its exports and benefit the Indian market.

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