Emerging markets have strengthened Honda’s sale figures

Honda Motors a renowned auto firm has announced the results of 1^st quarter in July, investors did not expect massive profits since the value of Yen has weakened to a considerable extent next to the dollar, analysts predict that the company will emerge with solid results at 10% of present market value. Honda at present enjoys over 40 percent sales from the North American segment; the company is now eyeing emerging segments. In 2012, Honda stated that it is keen to launch six million products on an annual basis within 2017 and is banking on sales from Asian markets and is hoping to acquire at least 50% of sales from developing markets.

Honda is working to strengthen its production units with new projects and also expanding its present units. The company has chalked out methods to tackle its depreciating Japanese Yen and has commenced work on new factory in Japanese markets, and the operations have started. This is a practical move by Honda since the Yen value has weakened and home grown models would fetch higher profits than exports in North American regions. The company is working towards strengthening its production outcomes in Mexico, China and Thailand.

China is Honda’s most preferred expansion market, although Honda sales in China has not touched supremely high margins, the company still banks on China, history is the strong factor for lower sales in Chinese markets, due to tensions between China and Japan, the sales are expected to increase when tension between both countries reduce.

The company is working on twelve fresh launches in Chinese markets within three years from now. There are some interesting new products this year with a MPV (Multi Purpose Vehicle), Jade and mid-size sedan. Honda is expecting admirable sales in Chinese markets at 1.3 million pieces. For an interesting piece of information China is Honda’s strong sale contender and contributes around 1/6^th of total sale outputs.

The sale situation in India is impressive, and majority of sales is contributed by the out pouring success of Amaze. The Amaze is the company’s first ever diesel fueled vehicle. The Indian population is drawn towards diesel models because of the attractive excise policies formulated by Government. Honda sales in India have hit high profits of 65% at 40,350 pieces in the past 3 months. The company is keen to strengthen its production units in the country to meet up to the roaring demands.

Auto sales in Indian markets have not been too attractive mainly due to the unfavorable market conditions which have resulted in higher interest values. There are some positives for the company to shine in India, since ownership figures for cars is not considerably high. There are some interesting launches for Indian markets; the Fit also called new Jazz is one of them.

Honda has worked out effective strategies to strengthen its sale portfolio and combat the depreciating Yen value by focusing more on home grown and sales from Asian segments. Even with the history related tensions, China is still a strong market for Honda and the best part is China has contributed significant sales to the company.