Exports of Honda motorcycles, automobiles and power products are expected to increase in value by 19% over last year to nearly 100bn baht, according to Asian Honda Motor Co’s Bangkok-based Asia and Oceania regional headquarters.
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The company said it had strengthened Thailand’s role as the company’s hub for the region with the opening of several new facilities, and also demonstrated its commitment by being the first manufacturer to have its eco-car project approved by the Board of Investment.
By committing to the eco-car project, Honda sees good potential for broadening its range of exports.
The total export value of all Honda products for 2007 will exceed 98.8bn baht, a 19% increase over 2006. Of this amount, automobile exports will reach 63.9bnn baht, representing 65% of the total value. Motorcycle exports will account for 21.2bn baht or 21% of total export value. Power product exports will be worth 10.6 bn baht, 11% of the total export value. Spare parts and accessories will make up the remaining 3%, or 3.1bn baht.
Fully built automobile exports had the most significant growth for 2007, increasing 35% by volume and 48% by value. By the end of this year, shipments are expected to reach 77,400 units worth 40.8bn baht. Growth is mainly driven by market expansion in Australia, the Philippines and Indonesia according to Honda.
Fully built motorcycle exports also remained strong, with growth of 25% by volume to 31,300 units, and value up 48%. Both automobile and motorcycle assembly kits exports will also show a slight increase for 2007.
Earlier this year Honda started construction of a new car plant in Thailand that will double annual capacity there to 240,000 units.
The second plant, adjacent to the current factory, should start production in the second half of 2008 and could be expanded to 120,000-unit capacity.
Honda’s two Thai plants will share production of the Accord (the larger ‘US’ model widely exported throughout Asia/Pacific, including Australia and New Zealand), Civic sedan, Jazz (Fit), CR-V and the emerging-markets-only City.
