Toyota, Honda to make India their outsourcing hub

With most of the Global car marker seeking high prospects in India, Indian market is witnessing large number of cars packed with high-end features and low price tag. According to recent update, Japanese car makers are now planning to make India as their Outsourcing center, so that they can export their car parts to the neighboring countries and elsewhere. Updates also suggest that Japanese car makers Toyota and Honda have already created a vendor base in India and both the companies are ready for exporting the parts to other countries.

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As per reports, Japanese auto biggie Toyota intends to enter countries like Brazil and Russia. Also, the Toyota Etios sedan which was crafted exclusively for India market is expected to reach the car markets in South America and Russia. At present, the company is looking into the overall market potential in these countries. When launched, the Etios will be manufactured from parts outsourced from India. If sources are believed, then Toyota is planning to release Toyota Etios Sedan in China this year and the launch in Brazil is expected to take place next year. It is worth mentioning that currently Toyota’s Indian units are exporting parts of Toyota Innova MUV and the Toyota Fortuner SUV to neighboring Asian markets.

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Just like Toyota, another Japanese car giant Honda is expected to launch Honda Brio hatchback car in India during the festive season. Earlier Honda Brio was scheduled to launch in India in second quarter but due to earthquake followed by Tsunami in Japan, the launch got delayed. However, Honda is also planning export of Honda Brio components to Thailand from Honda’s Rajasthan based manufacturing unit. Honda is expected to export 56 engine and several body parts. The reason is obvious, cost of labor in India is cheap plus low raw material cost. But, as Japanese units are already going through bad phase, this move of Automobile biggies will exert additional pressure on them.