India less risky than China, says Honda chief

Despite unrest at a Honda factory near New Delhi, the chief of Honda Motor says India carries fewer risks than China due to its relative political transparency and lack of anti-Japanese sentiment. Honda Motor president Takeo Fukui in an interview with Japanese media also said that China, for all of its economic growth, was just beginning to come of age as a hub to produce cars for export.
In late July, at least 130 people were injured as police clashed with striking workers at a Honda group motorcycle factory in Gurgaon near the Indian capital to protest the sacking of employees.
"I acknowledge that India often has strikes but the strike has calmed down and the environment for talks with the union is almost ready," Fukui said, as quoted by Friday's Tokyo Shimbun newspaper.
He doubted the fallout would last long. "India has less risk than China. India has political transparency and a neutral sentiment toward Japan," Fukui said.
China saw some of its biggest anti-Japanese protests in years in April, with demonstrators attacking Japanese interests after Tokyo approved a textbook accused of glossing over atrocities during the 1931-1945 occupation of China.
In June, Honda became the first foreign automaker to launch a full-scale export operation from mainland China, shipping cars to Europe and the rest of Asia.
Asked whether Honda would expand further in China, Fukui said production in the country was aimed at the domestic market and it was only at its beginning as an export hub.
Separately, Fukui said Honda was working to develop hydrogen fuel-cell vehicles, the environment friendly cars of the next generation, to be "commercially available within 10 years."
He said Honda plans further technology co-operation with General Motors, which has a business alliance with the Japanese automaker. He denied a report in Thursday's Yomiuri Shimbun that Honda had sealed a deal to develop hydrogen fuel-cell cars with General Motors and BMW.
"We don't intend to depend on other companies. I don't think it would be a plus for us," Fukui said.