Honda and Toyota will soon be joining other global small car manufacturers as the plant to make India a center for sourcing auto parts for their small cars. The entry level Etios sedan from Toyota recently launched in India, and Honda’s small Brio is set to launch by October in India, its second market following Thailand.
Both the companies want to introduce these models in other emerging markets as well, with the main components being exported from India. Japanese auto giant, Toyota plans to produce the Etios sedan in Brazil by next year. They have already begun studies for launching the Etios in China and Russia as well.
Toyota Kirloskar Motor’s deputy MD, Sandeep Singh was quoted as saying that their Etios model has opened up opportunities for Indian vendors. When they introduce it in other emerging countries, important components for the sedan will be supplied from India.
TKM currently exports transmissions for their MUV Innova and their Fortuner SUV to their plants located in Southeast Asia. The company has around 107 dealers in India. The company was also reportedly starting an engine facility, which would have a 100,000 per year production capacity for the Etios by 2012, as well as a transmission facility with a 240,000 per year production capacity by 2013.
Part of these productions could be supplied in their overseas markets, where their Etios sedan would be manufactured. The company’s chief engineer of product planning, Yoshikori Noritake, said earlier said that in the case of their other car models, engineers would bring their designs before suppliers and give them details regarding components, in the case of the Etios, is was the opposite.
They researched with their suppliers regarding the available materials, and then designed a car suitable for their Indian market with a competitive price. Their Indian vendors have qualified to meet the quality norms set by Toyota and will therefore be able to cater to their other markets as well.
Meanwhile, Honda which has joint partnership with Siel has already been exporting key body and engine parts of their Brio car to India. The CEO and President of HSCI said that the Brio was developed for the Indian auto market. They have already begun the production process at their plant in Thailand. Around 56 body and engine parts of the Brio were exported from their Tapukara plant in Rajasthan to Thailand.