Honda Motor India, Honda’s 100% subsidiary for Spare Parts, begins operations

December 1, 2006 New Delhi

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New Delhi, December 1, 2006: Honda Motor India Pvt Ltd (HMI), the wholly owned subsidiary of Honda Motor Co. Ltd. formally began its operations today from its corporate office in Greater Noida, UP.

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

Formation of HMI is part of the overall strategy to strengthen and integrate operations of Honda companies in India with respect to spare parts.

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 other Honda’s joint venture company, Hero Honda Motors Ltd in the near future.

Starting with a capital is Rs 15 crore, HMI has targeted a turnover of Rs 180 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 utilized along with other common resources like transportation, logistics and system development to help improve cost and operational efficiencies by up to 20%.

This would ultimately result in overall benefit to customers by way of quality services like delivery of spare parts within 24 hrs and other cost advantages.

Mr Masahiro Takedagawa, Operating Officer, Honda Motor Company, who is also the President and CEO of HSCI, will head the new company as its President & CEO.

Company Information

Name: Honda Motor India Pvt Ltd.
Established: Sept 18, 2006.
Starts operation: Dec 1, 2006
Location: Honda Siel Cars India Ltd., Plot No. A-1, Sector 40/41,
Surajpur-Kasna Road,
Distt. Gautam Budh Nagar (UP) - 201306
Capitalization Ratio: 100% Honda Motor Company Ltd.
Total Investment: About Rs 15 crore
President & CEO Mr. Masahiro Takedagawa
Employment: 40 associates
Business: Parts operations