Honda Goes For Smaller Cars To Keep Market Share

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MOTOR EXPO 2010

Honda goes for smaller cars to keep market share

By Kingsley Wijayasinha

The Nation

Since the global automobile market has yet to recover at a satisfactory pace, auto-makers have no choice but to offer smaller and cheaper cars to survive, Honda Motors president and chief executive officer Takenobu Ito said.

At the Thailand International Motor Expo yesterday, Ito told the press that the global auto market was recovering gradually, especially in key markets such as Japan and the United States, though the company hopes for it to pick up next year.

"In Asia, luckily, the auto market is experiencing high growth, and Honda hopes to increase its share in this region. We are closely watching these markets and developing products for them," he said.

Yesterday, Honda presented the prototype for Brio, a city car that will be manufactured under the government's eco-car programme and should go on the market next year. The Brio will be exported from Thailand to neighbouring markets, though India will manufacture enough for its own consumption.

Since the economic crisis has also affected the sale of large motorcycles, Honda is focusing on offering smaller cars and motorcycles in Thailand, Indonesia and Brazil, he said.

"Because of the crisis, it has become difficult to do business, as the automobile market has shrunk globally. This has forced auto-makers to reduce their production by 30-70 per cent, though in Asia and South America Honda still gets good support from consumers."

Ito said motorcycle sales in the two continents were also helping. "Once the global economy recovers, Honda will concentrate on growth markets."

Ito noted that smaller products offered lower profits. "But we still hope to offer exciting products that will drive up sales. Small cars can reach a larger number of customers because of cheaper pricing. This will help us expand, because Honda is a strong brand and has a strong following. The Brio is a good example - it is right for the Asian market and will drive growth."

Fumihiko Ike, president of Asian Honda Motor, said the passenger-car market had grown by 10-20 per cent over the past year in Asia, and Honda was enjoying growth but in a different segment.

"The Accord, Civic and CR-V used to be our main products, but now smaller models will take over. We are ready to concentrate on small models for both domestic and export markets," he said.

Honda is planning to introduce the Jazz Hybrid in Thailand, but it is still weighing the pros and cons, Ike said. "The hybrid market is not large yet, and though we already have the products, we need to wait for the right timing."

Arch-rival Toyota has already launched two hybrid (petrol-electric) models in Thailand - the Camry Hybrid and the Prius.

-- The Nation 2010-12-01

[MoonRiverOasis]

Honda goes for smaller cars to keep market share

Interesting use of words Why can't they just come out and say that they've gone from 38.7% market share to 30.8% market share (2009 Jan-Oct vs 2010 Jan-Oct) because cars like the VIOS, Mazda2 and March are chipping away at sales and their "new" City hasn't been the right product to combat the onslaught?

They shouldn't complain however, because even with lackluster products they've still managed to increase sales by some 25% (13,000 units) year-on-year.

The BRIO will be massive however - with this product they have every chance to finally knock Toyota out of the top-spot for passenger car sales in Thailand.

Pics and video of the BRIO here: http://www.thaivisa....otype-unveiled/