News Room - Business/Economics

Posted on 29 Jul 2009

Honda sees better H2 exports (Thailand)

Asian Honda Motor Co is hopeful of an automobile export recovery in the third and fourth quarters as the global economy continues to stabilise and economic stimulus programmes in various countries begin to show results.

 

Honda's exports from Thailand are expected to fall by 32% year-on-year to 71 billion baht. That would be an improvement from the first half when the Japanese company's exports from Thailand plummeted 43% year-on-year to 31.39 billion baht.

 

"Though global economic conditions are changing drastically, Honda remains focused on the needs of our customers, the commitment to be at the forefront of advanced technology including environmental solutions, and regional product development to ensure it is competitive in the global market," said president Fumihiko Ike.

 

For example, Honda has recently been exporting knocked-down motorcycle kits including engine assemblies and fuel-injection units to Japan as well as Honda City sedans to new markets in Europe, increasing the number of its export destinations from 24 to 46 countries.

 

With these efforts, Honda believes its exports will improve in the second half. In the first half, shipments of fully built automobiles and assembly kits dipped 49% year-on-year to 18.54 billion baht.

 

Mr Ike said the Thai-built City, Civic and Jazz performed well with 15,980 units exported in the period, accounting for 85% of Honda's total car exports. This signals a global trend favouring smaller vehicles.

 

Demand for motorcycles continues to decline as a result of the macro-economic situation.

 

Honda hopes that effective economic stimulus packages in several Asian markets will lead to improved motorcycle exports in the second half. In the first half, the total value of Honda's motorcycle exports declined by 38% year-on-year to 7.19 billion baht.

Exports of Honda's power products declined by 37% year-on-year to 611,829 units and in value by 32% year-on-year to 3.77 billion baht, driven largely by steep declines in demand from key markets including the US and several European nations.