Honda is set to produce more major models in the Philippines to counter a reduction of tariffs on imported vehicles by 2010.
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Local assembler Honda Cars Philippines’ vice president for marketing Arnel Doria told local paper the Daily Tribune the company is confident of producing more City and Civic models.
“The thrust is to increase further the volumes of City and Civic in preparation of 2010 when tariffs are slashed down,” Doria was quoted as saying.
Honda is eyeing total sales of 12,000 to 15,000 units this year with the Civic accounting for 600 units a month and the City 400 units.
In 2006, the Civic sold 5,934 units and the City, 4,179 units, the paper said, noting that these two models account for 80% of Honda’s overall sales in the country.
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By GlobalData“We have to make sure the market is ready, that locally assembled vehicles would not lose market share to imports given the regime of no tariffs by that time,” Doria told the Tribune, adding: “Whether or not to pursue CKD operations is a function of market potential.”
Doria said models for expanded CKD operations could be those models with highest sales under the proposed market expansion for increased production of completely-knocked down (CKD) units in the government’s motor vehicle development programme.
For Honda, these could include CRV, Accord and Jazz and other models currently imported assembled.
