Honda Launches New Car in Philippines, Announces Production Objectives

10/02/96

Reuters reported that Japan's Honda Motor announced that it will consider raising its Philippine production capacity to pursue growing demand in the Philippines and growing export markets: "We are now considering an increase in our production capacity in this country to meet future demand," said Honda President Nobuhiko Kawamoto in Manila.

"At the same time, we are also studying the feasibility of exports of automobiles from this country," he continued. "The Philippines has definitely become a significant part of our Asian operations."

Kawamoto, when interviewed, declined to give details about how much Honda might invest to expand production capacity or what part of that output would be exported from the Philippines. Honda's president was in Manila for the launch of Honda's new 1.3 liter model. Kawamoto said Honda would produce 10,000 of the new four-door City saloon cars annually--a goal the company could meet with existing production facilities. Honda Philippines officials said the firm's plant could produce 24,000 units, annually.

A Honda Philippines spokesperson said, "the existing line will be extended to meet the estimated demand of 14,000 to 16,000 units for Civic and Accord models plus 10,000 City cars."

Honda's launch of its third model--the City car--comes soon after eight-month car sales figures showed Honda had usurped Toyota's position as displaced Toyota as the Philippines' top-selling manufacturer.

Year-on-year figures show that total Philippine car sales rose by one quarter during the first eight months of the year, from 46,675 to 58,382 units. During that period, Honda had the biggest share of the total market with 13,704 units (23 percent), followed by Toyota with 12,968 units (22 percent). Mitsubishi and Nissan had 16 13.7 percent of the total market, respectively.

In 1995 total Philippine car sales hit 71,176, and Honda was the fourth biggest player with 11,673 cars (16 percent) Toyota then led the market with 17,107 vehicles or (24 percent).

Paul Dever -- The Auto Channel