This is why Honda, Suzuki and Toyota love India

There's something about India as a market that's enticing the behemoths of automobiles. And they're coming in hordes.

The country now ranks among the top markets for Japanese automobile companies like Suzuki, Yamaha, Honda and Toyota among others.

Although thanks to Maruti Suzuki's market leadership in the car segment, India has been topping Suzuki's global markets both in terms of volumes as well as revenues, now the situation is being replicated by other Japanese biggies like Yamaha, Honda and Toyota as India moves up the global pecking order. The Indian market now ranks among the top five markets globally for almost all the top Japanese automobile brands, according to an Economic Times report.

Take Honda Cars India, the four-wheeler local subsidiary of Honda Motor Corp. Thanks to some top-gear growth in the last two years, India now ranks as Honda's fourth biggest market by volumes. Said Jnaneswar Sen, senior vice-president, marketing & sales, Honda Cars India: "India ranks after the top three markets of US, China and Japan globally thanks to our good growth run for the past two years. HCI clocked 41% growth 2014-15 selling 1.89 lakh units up from 1.34 lakh units the year before. In 2013-14, we clocked a growth of 83% year-on-year. Leaving out the luxury cars, Honda is the fastest growing car brand in India. Our current market share in India is over 7%."

Honda's top-gear run has prompted the Japanese car maker to expand capacity at its second plant in Rajasthan from 1.2 lakh units to 1.8 lakh units. "Our target is to sell 3 lakh units in India by 2016-17."
Ditto for fellow Japanese brand Yamaha which now pegs India just after its global top market Indonesia. Said Roy Kurian, VP-marketing and sales, Yamaha Motor India: "India will become Yamaha's second largest volume market after Indonesia by year-end though there will be quite a large gap between the No1 and No2 markets. Earlier Vietnam used to be our second largest market but that is now expected to slide to No3 in the pecking order." Yamaha is already adding another 1.8 million units (in phases) thanks to its new plant in Chennai. Along with its existing plant in Surajpur, the fresh capacity will take Yamaha's total two-wheeler production in India to nearly 3 million units.

For Toyota Kirloskar Motor, Thailand, Indonesia and India comprise the troika of "significant markets" in the Asia Pacific region. "India stands pretty tall in Toyota's gameplan and is the third market after China and US in terms of importance," said Shekar Viswanathan, vice-chairman and whole-time direct, Toyota Kirloskar Motor told ET.

Even relative newcomers like Nissan are stepping on the gas for some India action. Said Arun Malhotra, MD, Nissan Motor India: "India is one of the largest hubs for the investment that the Renault-Nissan Alliance has envisaged for a very competitive market like India. Our manufacturing facility is the largest that the Alliance has developed so far across the world with a production capacity 480,000 units. India is the first, among other growth markets across world with a production capacity 480,000 units. India is the first, among other growth markets across the world where Datsun made a world debut."