Honda India aims to increase the local content in their cars and also improve the quality of their products. So despite the reduction in prices of vehicles, the quality of materials will get better.
Katsushi Inoue, CEO, Honda Cars India Ltd. confirmed that the company's priority will be to boost the localisation in cars. With the use of local components in their vehicles, the company will be able to reduce the cost of a car overall. They also plan to focus on improving the quality of their supply chain including logistics, manufacturing and dealerships before launching new models.
Inoue said, "I am going to improve quality further more. However, in this emerging market we need volume as well. Also, Honda is open to partnerships with local component makers if they meet the company's quality, cost and delivery time requirements."
Honda did not give out the details of the extent of localisation it plans to achieve, but this will be an important step for the manufacturer looking at their aggressive strategy for the Indian market. Honda's new CEO Takahiro Hachigo had made it a mission to restore the firm's reputation after regulators linked eight deaths to faulty air bags in cars made by Honda. Since then, he has made it a global mandate to focus on improving the quality of cars.