Honda revs up domestic assembly as used cars slide
By ANGELO S. SAMONTE, The Manila Times Reporter
Honda Cars Philippines Inc. said local assembly is perking up in proportion to the declining number of registered used vehicles.
"There are ongoing changes in the industry, and the volume of used cars being registered is shrinking. We observe these registrations in Olongapo and Cebu. It’s a gauge and the potential is getting better," Arnel Doria, Honda’s deputy head for marketing, said.
Honda targets to increase the number of vehicles being manufactured locally and achieve the maximum capacity of its Laguna plant to around 30,000 units a year.
Doria informed that Honda at present has a production capacity of 13,000 units.
The company is not only revving its manufacturing capacity, it is also strengthening its dealership network and putting its salespeople in intensive training.
"Honda will add three more dealers to the existing 20 dealers nationwide to further increase sales this year," he informed.
On Monday Honda launched the eighth generation Civic model that it estimated would sell at a rate of 800 units a month starting this year.
The company spent P100 million to produce the Honda Civic in the Philippines.
Honda will again introduce a new model by the middle of this year. Without elaborating, Doria said "it will be in the RV segment and will come from the United States."
The company manufactures the Civic, City and CRV in its Laguna assembly plant.
It plans to sell 300 to 400 units of the City and CRV every month.
Last year Honda sold around 9,000 units of its entire vehicle lines.
To achieve its pre-Asian crisis goal, Doria said Honda will hire more people to beef up its 700 workforce.
"The main thrust for sales is actually in the B class since the A class market is fixed," Doria said.
However, the major challenge in the lower end market is the wont of customers to sell an older vehicle before buying a new one. "The economy must be so good for more customers in this segment to afford new purchases," Doria conceded.
Honda Cars Philippines Inc. said local assembly is perking up in proportion to the declining number of registered used vehicles.
"There are ongoing changes in the industry, and the volume of used cars being registered is shrinking. We observe these registrations in Olongapo and Cebu. It’s a gauge and the potential is getting better," Arnel Doria, Honda’s deputy head for marketing, said.
Honda targets to increase the number of vehicles being manufactured locally and achieve the maximum capacity of its Laguna plant to around 30,000 units a year.
Doria informed that Honda at present has a production capacity of 13,000 units.
The company is not only revving its manufacturing capacity, it is also strengthening its dealership network and putting its salespeople in intensive training.
"Honda will add three more dealers to the existing 20 dealers nationwide to further increase sales this year," he informed.
On Monday Honda launched the eighth generation Civic model that it estimated would sell at a rate of 800 units a month starting this year.
The company spent P100 million to produce the Honda Civic in the Philippines.
Honda will again introduce a new model by the middle of this year. Without elaborating, Doria said "it will be in the RV segment and will come from the United States."
The company manufactures the Civic, City and CRV in its Laguna assembly plant.
It plans to sell 300 to 400 units of the City and CRV every month.
Last year Honda sold around 9,000 units of its entire vehicle lines.
To achieve its pre-Asian crisis goal, Doria said Honda will hire more people to beef up its 700 workforce.
"The main thrust for sales is actually in the B class since the A class market is fixed," Doria said.
However, the major challenge in the lower end market is the wont of customers to sell an older vehicle before buying a new one. "The economy must be so good for more customers in this segment to afford new purchases," Doria conceded.
posted by OlongapoCity Zambales at
2:04 PM
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