Honda keen to acquire milestone sale of 4.5 million despite hindrances in emerging market economies

Honda Motor is a premium auto brand, and has warned that vehicle flow has cooled down in reputed emerging segments. The most prominent slow sale motion is witnessed in Southeast Asia. Recession has caused a huge blow to sale outputs over the past years. Japan too is a grave victim of economic depression, and Honda is keen to tide away from harsh recession waves and aims to roll out 4.5 million pieces in 2014. Japan has been a victim of natural disasters and the value of yen currency has weakened. Honda’s aim to hit the 4.5 million mark is a reflection of the company’s determination to push through the tide.

Honda has managed through calamities in the past and it does not come as a surprise that the company is keen to acquire grand milestones. The company in the near future is keen to build small models to attract mass sales, and its main sale promotion areas are emerging economies like India and Indonesia. The demand in the two nations has been sky high over the past years.

The onset of great depression has tarnished impressive sale dreams in many nations. The blow has resulted in sequences of undesirable market circumstances like weak currencies and increase in interest rates. Honda will work on attractive strategies that would not come in the way of market deficiencies. Its aim for 2017 March is to sell half of six million vehicles for fast growing economic markets. For 2012 or 2013 Financial Year the expected sale increase is 50%.

In order to achieve its target Honda’s sale portfolio for emerging economies will have to increase by two fold. In 2013 the company rolled out about 1.6-1.7 million products. The Executive Vice President of Honda Tetsuo Iwamura said that the company is keen to note robust growths in emerging markets like Thailand, Indonesia and India, he also went on to say that the team has to analyze all the minute details and work out an effective plan since the demand could still be shaky.

Honda is not too positive about the sale prospects in dominant emerging markets of Thailand and India in 2014. The sale outlook in India appears to be more positive with 3% reduction compared to a 15% sale dip for Thai markets. Iwamura is of the view that there is a huge demand for small models, but is unsure about the buying capacity for larger pieces.

Honda sales prospects in the past year have been admirable in India, and the growth has almost hit 50%, and the sale output in Indonesian markets has doubled. The sale outlook in Thailand has not been too over the top with 23% reduction and the numbers of vehicles sold are 163,000. Political instability has taken a toll on attractive sale flow in Thailand, and the dip is now 3.6 % from 5% encountered in the corresponding period.

Honda has some interesting launches in India like Vezel and Mobilio MPV to name a few. The fourth gen Honda City launched in India and Thailand is a sure shot head turner, and the new products in emerging segments could lead the pathway to Honda’s ambitious sale record of 4.5 million.