Honda's second plant in Thailand introduces machine tools made in India and China

Honda consultant Hiroyuki Yoshino delivered a speech at the '24th Japan International Machine Tool Fair (JIMTOF2008)' on October 30, 2008, announcing that Honda's second plant in Thailand used machine tools made in India and China (pictured). Currently, about two-thirds of Honda's cars are produced overseas. To match the situation, Yoshino said: 'Really, we want to buy machine tools from the factory location'. Honda's second plant in Ayuthaya, Thailand, was completed in September 2008, and production of the 'Accord' began in October. Yoshino, who visited the plant in September, said: 'Although there are not many, there are Indian machine tools and Chinese machine tools. Although it is not the high-precision equipment that Japanese manufacturers are proud of, (using local or neighboring emerging market countries) machine tools) trends are taking shape”. For automakers demanding high quality and durability, there is no precedent for using machines from emerging market countries. Therefore, this adoption means that machine tool manufacturers in India and China have met the stringent conditions set forth by Honda. Like most Japanese automakers, Honda also takes 'making cars where there is demand' as a basic policy. Because it is convenient to shorten the lead time, grasp the sales opportunities, and meet the needs of customers in various aspects such as color and equipment. It can also reduce transportation costs, better cope with exchange rate changes, and be less susceptible to trade frictions. The above-mentioned localization policy applies not only to automobile assembly plants, but also to engine and transmission plants that use a large number of machine tools. Honda has previously increased its local sourcing rate for components. The next stage also has the potential to increase the procurement rate of machine tools in emerging market countries at or near the locality. Yoshino asked the people present: 'How should Japanese machine tool manufacturers deal with this globalization trend?'.