Honda’s motorcycle and automobile operations are growing rapidly in Asia/ Oceania — and Honda’s increased involvement in its sales and production operations in the region has the company making more efficient use of these resources as part of a regional and global component supply network.
Sales of Honda motorcycles in the region increased 6% in 2009 to a record 11.7 million units.
In Thailand, Honda has been the best-selling motorcycle brand for 21 consecutive years and in 2009 accounted for more than 60% of the
million motorcycles sold in the country, the world’s second largest motorcycle market after China.
In July 2008, Honda introduced the CZ-i 110 motorcycle and the Click-i and Airblade-I scooters in Thailand with PGM-FI technology for enhanced fuel efficiency, lower exhaust emissions and greater engine performance. Honda is planning to install PGM-FI technology in all models sold in Thailand by the end of 2010.
In June 2009, Thai Honda Manufacturing began exporting motorcycle engine component parts sets, PGM-FI units, and other components to Japan, including 110cc 4-stroke engines for the Honda Super Cub 110.
Honda began selling the PCX in Thailand in late 2009. Thai Honda Manufacturing Co., Ltd. will serve as the global manufacturing base for PCX and began exports of PCX in early 2010 to other countries in the ASEAN region as well as other regions including Japan, Europe and the U.S.
In February 2010, Honda introduced the Wave110i AT, a Cub-type motorcycle featuring a new, more compact and durable CV-Matic transmission. The model was introduced in Vietnam in March 2010.
Honda Motorcycle & Scooter India (Pvt.) Ltd. (HMSI), Honda’s wholly-owned motorcycle production and sales subsidiary in India, will build a second motorcycle plant in Rajastan, 40 kilometers from its existing plant in Haryana. The plant will have a capacity of 600,000 units with employment of 2,000 associates and investment of 8.9 billion yen. HMSI will also expand its existing plant from 1.25 to 1.6 million units for a total annual production capacity of
million Honda motorcycles and scooters. HMSI has enhanced its product lineup with the introduction of the 110cc CB Twister in February 2010 and a redesigned 100cc Activa in 2009.
Hero Honda Motors, in India, began operations at its third motorcycle plant in April 2008, adding annual production of 1 million units. Now the production capacity of its third plant has been increased to 1.5 million units, bringing total capacity to 5.4 million units. With the inclusion of Honda Motorcycle & Scooter India (Private) Ltd., India now has the largest production capacity for Honda motorcycles of any country in the world.
Honda Vietnam Co. (HVN) marked a major milestone with the production of its five-millionth motorcycle in July 2008. HVN also inaugurated its second motorcycle plant located adjacent to the existing motorcycle plant in the Vinh Phuc province. The $65 million plant with an annual capacity of 500,000 units increases HVN’s annual motorcycle-building capacity to 1.5 million units.
P.T. Astra Honda Motor in Indonesia began operations at a new plant in 2006 with a capacity of 1 million units annually. Total production capacity in Indonesia has been expanded to 3 million units.
The Philippines and Pakistan strengthened their production operations in 2006
resulting in each country now having an annual capacity of 500,000 units.