Honda's motorcycle and automobile operations are growing rapidly in the Asian region -- 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 supply network in Asia as well as a global network.
Motorcycle
- Honda is experiencing remarkable growth of its motorcycle business in the region, with sales reaching over 7 million units.
- P.T. Astra Honda Motor Inc., Honda's joint venture motorcycle company in Indonesia, is constructing a new plant with a capacity of 1 million units annually, making the company Honda's largest motorcycle production subsidiary in the world with the annual capacity of 3 million units.
- Honda Motorcycle & Scooters India constructed a second assembly line to add 150,000 units of capacity. Together with Hero Honda Motors, India now has the largest production capacity of Honda motorcycles of any country in the world at 3.1 million units annually.
- In a further effort to meet the needs of local customers, a new motorcycle R&D facility was added in Thailand in 2004 to strengthen the existing R&D activities. Honda also conducts motorcycle R&D in Indonesia, Singapore, Vietnam and India.
- Honda exports scooters and motorcycles made in India and Thailand to Europe.
Automobile
- Honda has increased its commitment throughout Asia, including increasing its capital participation in automobile operations in a number of countries, particularly Indonesia, Malaysia, Taiwan and Thailand.
- Utilizing Honda's complementary supply network within the ASEAN region and by utilizing the AFTA scheme, in 2002, Honda began the reciprocal supply of the Stream from Indonesia to Thailand, and the Accord from Thailand to Indonesia. Also, the City model for Indonesia and the Jazz model for Malaysia and the Philippines are supplied from Honda's plant in Thailand instead of through local production. Indonesia has started to export Stream to Malaysia in 2004.
- In the Republic of Korea, Honda established its first automobile sales subsidiary and began auto sales in 2004.
- Honda was granted a license to produce automobiles in Vietnam. Annual production capacity at the new factory will be 10,000 units, with production targeted to begin by mid-2006. The Honda Civic will be the first model to be produced in Vietnam.
Global Supply Network
Fully utilizing Honda's experience in motorcycle production, and through cooperation with parts suppliers, Honda is enhancing the function and responsibility of its Asian operations to serve as export hubs for products, components and transmissions within the region and to Honda's global operations.
- Honda's automobile exports from Thailand reached 44,564 units in 2004 to more than 30 countries, including Japan.
- Manual transmissions produced in the Philippines, and automatic transmissions, continuously variable transmissions and engine valves produced in Indonesia are exported globally - roughly 30% of these transmissions go to Honda's European operations.