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Automotive manufacturers across the world have experienced the saturation of demand in the mature markets. Foraying into the emerging markets of India and China brings a mix of opportunities and challenges. These economies with 15%+ rising consumer demand, 7%+ rise in per-capita income and a passenger car density less than 1/8 of mature markets, hold promise of sustaining double-digit growth of vehicle sales. But the challenges are immense. Ultra-low margins of OEMs, lack of transportation infrastructure, Low level of maturity of funding operations, fragmented demand, import restrictions and mandatory export obligations pose serious constraints to non-linear growth. HONDA (Honda Siel Cars India Limited), a subsidiary of Honda Motor Corporation, Japan has developed the next generation supply chain with a strategy cognizant of the global opportunities and the local limitations which such emerging economies present.