Honda Steps Up Motorcycle Sales in Vietnam

09/18/96

Nikkei English News reported that, by the end of 1997, Honda Motor Company intends to increase the number of its motorcycle sales outlets in Vietnam from 8 to 150. The company hopes to grab 50% of the country's burgeoning motorcycle market by the year 2000. The company will also open a dealer training facility at its Ho Chi Minh City office this fall.

In March, Honda set up a motorcycle manufacturing company with Vietnam's VEAM to start local production. The Honda Vietnam plant is located in the suburbs of Hanoi and is expected to begin production in late 1997. Honda Vietnam will produce 200,000 motorcycles in its first year, boosting output to 450,000 by 2005.

Analysts estimated Vietnam's motorcycle market at about 350,000 units in 1995, and expect it to reach 500,000 by 2000.

Paul Dever -- The Auto Channel