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Honda Could Source Bike Parts from India

After some rumors surfaced last week reporting that Honda will stop production of its motorcycles in Spain at the end of March due to slow European sales, the Japanese motorcycle manufacturer recently revealed that it is strongly considering sourcing bike parts from low-cost countries, like India.

“We have not finalised any plans yet but the future is likely to see some sourcing from India for our bikes assembled in Japan,” top company sources told Business Line during a visit by Indian journalists to the Honda Motorcycle R&D Centre.

Honda believe the production methods of the company's Japan-built big bikes have changed significantly due to the recent economic downturn. Costs are now a bigger issue than ever, which is part of the reason the company is now looking to source from low-cost countries.

Other reasons mentioned by the company’s officials include fuel consumption, especially with new options such as hybrids and electric cars. “We also have to keep in mind that the near future could see lighter motorcycles,” they added.

Honda therefore turned its attention to India and plans to source key components for its sporty motorcycles assembled in the Kumamoto facility referred to as the mother plant.

The journalists were invited at the Honda’s R&D Centre to take a closer look at the company’s latest VFR1200F dual clutch transmission motorcycle, which will be first launched in Europe, then followed by the US, Japan and then China. Brazil could join the list in 2011 while Russia may import the bikes from Europe.

So far, there are no plans for the VFR1200F in India, though it may ride on Indian parts...
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