Financial Daily from THE HINDU group of publications
Saturday, Dec 11, 2004
Honda Motor mulls synergising India, Thailand operations
Mr Takeo Fukui, President & CEO, Honda Motors Co Ltd, flanked by Mr Brijmohan Lall (left), Chairman, Hero Honda Motors Ltd, and Mr Pawan Munjal, Managing Director, at a press conference to celebrate 20 years of partnership in the Capital on Friday. - Ramesh Sharma
New Delhi , Dec. 10
HONDA Motor Corporation is mulling a synergy between its Indian and Thai operations in order to capitalise on the free trade agreement between the two countries, a top Honda official said today.
"We have been studying the FTA very carefully to find a system by which our operations will be benefited, especially in motorcycles since we have huge capacities in both the countries. As far as automobiles are concerned, we can use our Thai operations to the benefit of India," the Honda Motor Managing Director, Mr S. Toshida, told a select press briefing.
Meanwhile, the President and CEO of Honda Motor, Mr Takeo Fukui, who is on his maiden visit to India, said that his company "sees huge potential in the Indian automobile market and will invest whatever profits Honda's businesses in India generate in the country."
Asked how much the Indian operations contribute to the global business of Honda, he said, "It is not simple to arrive at a figure but each operation here is self-reliant and separate from the other."
Honda's operations include joint ventures Hero Honda, Honda Siel Cars India, Honda Siel Power Products and wholly owned subsidiary Honda Motorcycle, and Scooter India.
Complimenting Hero Honda on achieving a cumulative production of one crore, he said, "We are happy with our joint venture with the Hero Group."
Meanwhile, Hero Honda Motors Ltd said today that it would invest Rs 70 crore to ramp up capacity and finalise plans to set up a third manufacturing unit next month.
The company would increase production at its two plants to 2.8 million units annually from 2.4 million units at present, its Managing Director, Mr Pawan Munjal, said.
"We will be able to announce the new plant within a month," the Hero Honda Motors Chairman, Mr Brijmohan Lall Munjal, added.
Hero Honda, which is 26 per cent each owned by Honda Motor Co of Japan and the Hero group, manufactures motorcycles at its two plants in Haryana.
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