Honda: Plans rapid sales expansion in emerging countries
Strengthens localized production and development capabilities to gain competitive advantage
2013/09/25
- Summary
- Honda: Aspiring to sell 3 million vehicles in emerging countries in FY 2016
- To concurrently develop all-new Fit in six regions globally toward 20% cost reduction
- To increase orders with mega-suppliers for next Civic
- Strengthening production capacities and development structures in emerging countries
- Asia: growing contributor to operating profit
- Production Forecast by LMC Automotive: Honda Group production forecasted to 5.32 million in 2016
Summary
Honda Motor Co., Ltd. (Honda) plans to sell six million vehicles in the world in the fiscal year ending March 2017 (FY 2016). This includes three million vehicles to be sold in emerging countries (more than twice the number sold in FY 2012). Honda stands somewhat behind other leading automakers in exploring business opportunities in emerging countries. Therefore, Honda has decided to work toward maximum localization of production, development and parts procurement in emerging countries, thereby allowing itself to deliver competitive models that meet local needs at affordable prices. Global development and production scheme of the all-new Fit is implemented following the localization scheme.
Related report:
Please see MarkLines Report "Honda's China production increased to meet 2015 projections" (posted May 2013)" for details on Honda's business in China.
Honda releases medium-term strategy (1): The all-new Fit to be developed in six regions (posted December 2012)