Honda not planning to revise investment plans for China despite a 41% sales drop

Article by Christian A., on October 15, 2012

Honda isn’t revising its investment plans for China even as the sales of Japanese automakers have fallen by 41% in September, according to Honda President Takanobu Ito. China and Japan have been engaged in a territorial dispute over a group of islands. During a recent interview, Ito said that China may soon become the largest market in the world for hybrids.

He believes that it’s not likely that the current political problem will last for longer than six months. Honda’s sales in China last September fell to their lowest level since May 2011. Honda anticipates that growth during the next 2 to 3 years will be driven by sales of its new Fit range as it expands in growing markets. Ito said that it expects the Fit series to have a “good uplifting effect.”

He believes that the next three years will be marked by growth throughout the world. Honda’s focus on the Fit, which is comparable to Toyota’s Prius, proves how big Honda’s expectations are of the demand for smaller vehicles in China and in other countries as fuel prices go up within the next handful of years.

Researcher Autodata Corp. said that General Motors Co., Fiat SpA and Toyota are following this strategy as compact cars are on course to get their biggest share of the U.S. auto market since 1993.

Satoshi Yuzaki, Tokyo-based general manager at Takagi Securities Co., said that in deciding on a car, consumers make their choice based on how friendly it is to the environment and its fuel efficiency. He said that the growth in emerging markets can’t be compared with the growth in developed markets so Honda's goal for half of its sales to come from emerging markets is in accordance with the industry’s pace.

Topics: honda, china, investment

If you liked the article, share on:

Comments

Recommended

During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
How fast can a 2017 Chevrolet Camaro ZL1 actually go? Considering the amount of power lurking underneath its line-laden bonnet, the 2017 Camaro ZL1 is capable of achieving a top...
by - February 23, 2017
As it turned out, we’ll be seeing Toyota’s new super supermini at the 2017 Geneva Motor Show in March. It’s time we all get to meet the new Toyota Yaris...
by - February 23, 2017
Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries