This past quarter, Honda's US production had outpaced Japanese production for the first time ever. It's a common practice for carmakers to operate plants in many countries to complement production in its home country. For the second manufacturing quarter of 2010, Honda produced 236,819 vehicles in the US, while it built 236,559 vehicles in Japan.
There's actually only a 260-vehicle difference but it's still seen as a major landmark for Honda. But when the production for the first half of the year is calculated, Japan made more than the US.
A total of 491,913 vehicles were produced in Japan compared to 480,913 in the US. Honda's production was also seen to increase in other regions.
Honda raised local production in many areas, but not reaching levels such as in the US or Japan. When local output is increased, the cost of regional shipping is lower.
In addition, the manufacturers' costs are kept in check. Honda also revealed that during the first half of 2010, 90% of all Hondas sold in the US were also made in the US. Local output is rising due to the rising demand in certain markets.
Industry analyst Jesse Toprak said that Japan's population is waning and its market is already saturated with vehicles. In the US, it's expected that sales will only improve after the economic downturn. In addition, emerging markets are seeing an increase in the demand for cars.