Honda's strategy to expand in Asia by developing cars for local markets
Aiming to sell 1.3 million units in China by 2015; 1.2 million in rest of Asia in 2016
This report outlines business strategy of Honda Motor Co., Ltd. to expand its presence in Asian markets. In the fiscal year to end in March 2017, Honda plans to sell 6 million units worldwide, of which 3 million units are slated to be sold in emerging markets. The following is the breakdown of the 3 million units: 1.3 million units in China by the end of 2015, and 1.2 million units in the rest of Asia/Pacific by the end of FY2016.
During FY2014, the company plans to sell 1.86 million units in emerging markets. However, based on its aggressive sales plans, the company is aiming to rapidly increase sales in these markets within three years by expanding its production capacity. In order to increase its unit sales as planned in emerging markets, Honda is significantly advancing the localization of R&D activities. In addition, Honda is developing models that reflect local-market needs, and is increasing the local content ratio. The company hopes to reduce costs and to offer customers affordably priced low-cost vehicles.
It should be noted, however, the LMC Automotive has forecast that Honda will sell 4.89 million units worldwide in 52 countries in 2017, selling 980,000 in China, 290,000 in India, and 200,000 in Thailand.
Honda expects sales of 1.03 million in Japan in FY 2014 (posted in May 2014)
Honda: Plans rapid sales expansion in emerging countries (posted in September 2013)