Honda launches new Indian subsidiary, Honda Motor India

01 December 2006

Mumbai: Honda Motor India Pvt Ltd (HMI), the wholly owned subsidiary of Honda Motor Co. Ltd. formally began its operations today in Greater Noida, UP. The new company has been launched to integrate the spare parts logistics operations of Honda companies in India.

The plan to set up HMI was first announced in July this year by Takeo Fukui, president and CEO, Honda Motor Company, during    his visit to New Delhi.

HMI will begin its functions by immediately taking over the parts operations of Honda Siel Cars India (HSCI) and gradually integrate operations of Honda Siel Power Products and Honda Motorcycles & Scooters India Ltd.

HMI will study the possibility of establishing a similar synergistic relationship with the fourth Honda company, two-wheeler maker Hero Honda Motors Ltd in the near future.

Starting with a capital is Rs15 crore, HMI has targeted a turnover of Rs180 crore for the 2007-08 financial year.

HMI will have a new warehouse facility to stock the parts of motorcycles, automobiles and power products together which will be utilised along with other common resources like transportation, logistics and system development to help improve cost and operational efficiencies by up to 20 per cent.