Honda to boost production

Honda Viet Nam plans to increase its motorcycle output from 1.5 million to 2 million units by the second half of 2011.

Honda, the largest motorcycle maker in Viet Nam, said on its website that it planned to expand its plant in northern Vinh Phuc Province to meet rapidly rising demand in Viet Nam – the world’s fourth largest motorbike market behind China, India and Indonesia.

Motorbike sales in Viet Nam, which has a population of about 86 million, rose 20 per cent in 2009 against the previous year to 2.26 million units.

Expansion of the plant means the company’s investment in the country will rise from US$355.4 million to $425 million.

Honda Viet Nam began production in Viet Nam in 1997. Since then it has produced roughly 7 million units. The company said it had a market share of 63 per cent last year.

Sales in the first four months of this year amounted to more than 543,000 units, a year-on-year increase of 69,700 units. Honda is aiming to produce 1.5 million units this year.

Industry experts forecast that customers in Viet Nam will buy 2.9 million motorcycles this year.

Honda Viet Nam general director Koji Onishi said that his company last year sold 1.43 million motorcycles. — VNS

Tags: Honda Vietnam, Vietnam automotive, Vietnam automotive industry