Honda Shifts Production To Low Cost Countries

TOKYO, Japan (April 10) - Honda Motor Co. will start the production of scooters and motorcycles in India, China and Thailand within the next few years. Honda President Hiroyuki Yoshino said recently at the unveiling of a new minivan that the world's largest motorcycle maker want to lower the sales price in Japan of its 50cc scooters and motorcycles to below JPY 100,000 (US$803;EUR896). Currently Honda sells 50cc vehicles in Japan for sales prices of about JPY 150,000 (US$1,205;EUR1,344). According to Hiroyuki Yoshino the motorcycle maker cannot achieve a price lower than JPY 130,000 (US$1,044;EUR1,164) with an even more lean domestic production. The Honda President observed that the relatively high price of scooters and motorcycles proved to be a limiting factor for the further growth of the Japanese market. With regard to the timeframe in which Honda could introduce scooters and motorcycles made in India, China or Thailand into the Japanese market, it depends on how quickly the company's Asian manufacturing bases could achieve a sufficient standard of quality. (SH)