India to become export hub for manual gears

Japanese automaker Honda Motors has drawn up plans to make India its base for manufacture and export of manual transmissions to emerging markets across Asia and Latin America. It plans to use its unit in Rajasthan for manufacture and supply of manual gears for different classes of passenger vehicles to its overseas facilities. To make use of India’s cost advantage, Honda has identified several critical parts that will be manufactured in India. Recently, the company invested about `3,500 crore in its second plant at Tapukara, Rajasthan to make engines, axles and other auto components that are being exported to various markets. The move to use India as a manufacturing base has helped the company cut costs, export components at competitive costs and improve the local arm’s profitability.