Honda Vietnam to promote motorbike exports

Tuesday, May 27, 2014 17:11

Honda Dunk scooters are exported to Japan. — Photo

HA NOI (Biz Hub) — Honda Vietnam aims to make Viet Nam a regional motorbike export hub, said General Director Minoru Kato at a meeting with the local media on May 23.

The motorbike export market was projected to be expanded to 22 nations with a total value of US$ 247 million, said Minoru Kato.

The company launched its export plan in 2011 and this target has been gradually realised with the establishment of extra production facilities, including three motorbike plants with a total capacity of producing 2.5 million units per year, and other workshops for parts production.

The general director also reported that most of the company's bike models would be exported this year. Some models are being specially manufactured for certain markets, such as the DUNK model is for the Japanese market. The export volume of completely built units was 32,600 and the total value of the exports was US$163 million, up 50 per cent compared with the last period, marking an outstanding development in the target of export promotion.

For maximising production and increasing the localisation rate, Honda Vietnam put into operation a Piston workshop of the highest production capacity in the Honda Group in April, with a total investment of VND231 billion ($11 million) and a total output of 2.4 million units per year. This contributes to helping the company increase the average localisation rate to 93 per cent for motorbikes, meeting the domestic as well as export demand.

The motorbike market situation in the fiscal year 2014 faced lots of difficulties due to the downturn of the economy which has not recovered yet. The total volume of the market is estimated at 2.71 million units, which was equivalent to 87 per cent compared with the last period. Honda Vietnam's sales are expected to be 1.85 million units, equivalent to 95 per cent compared with the last period, but its market share increased by 5.5 per cent to reach 68 per cent. — VNS

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