India can be key base for exports to Africa: Honda India's Katsushi Inoue

MUMBAI: Katsushi Inoue, Honda Cars India Ltd's new boss, who took charge in April this year, is confident that his company will drive into profit zone with the help of new launches and better capacity utilization. Inoue said Honda had posted profits last year after a gap of several years.
"We have just got into the black, and should be able to register profits this year - even if meagre - as we are still in investment mode," said Inoue, who had visited India 20 times, right from the days when Maruti 800 and Hyundai Santro blazed the streets.
In one of the very first interviews to the media after taking charge, Inoue said his primary objective is to sell three lakh units, and set up a new factory in Gujarat which will shape Honda's 'future' in India. The new chief also stressed that he would try to optimize the 3-lakh unit plant capacity in Greater Noida and Rajasthan in the next two to three years.
ET learns that the Indian base is being looked at by the HQ to become a manufacturing base for exports to African countries like Algeria, Angola, Ghana amongst others with the new generation Brio platform.
Inoue says primary focus is domestic market. "Yes, India can become a key base for exports to Africa, as our completely built exports are not that big. However, we don't have enough capacity to serve the global markets yet, and there's still a big potential for India to grow," Inoue said.
The current capacity in India is just enough to cater to the domestic demand, but once the new plant in Gujarat is up and running, Honda may have spare capacity to cater to foreign markets, he said. Honda Cars India grew 41% till March '15, and with new models lined up for launch, he is confident that the carmaker's "growth momentum" would continue.
The new Jazz premium hatchback will be launched in the next 4-8 weeks before the company enters the lucrative compact SUV space next year, based on its popular Brio platform. Inoue, who sees the large population of youth in India as the "biggest sweet spot and opportunity", said Honda will introduce models which will meet the needs of today's youth and expects the new Jazz to serve this purpose.
He, however, said Honda is yet to take a call on a small car for India. "We have no concrete plans for India as yet," he said. For Honda, Brio could be the entry model for the "near future", and whether the company needs something in the lower price segment than Brio is something they have to decide. Inoue expressed his belief that a brand such as Acura -- Honda's premium offering - will make its way into India some day, but he isn't sure when.