A study from consultants IHS forecasts that Honda will experience a production rebound at its various global facilities over the short- to mid-term as the company recovers from the effects of the financial crisis of 2009, the earthquake and tsunami disaster in Japan and the flooding in Thailand.
IHS Automotive forecasts that Honda’s total global vehicle production total in 2013 will be slightly less than four million units, a figure not achieved since 2008.
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Production figures after 2008 were adjusted downwards in order to match the shrinking global new car market, while the two natural disasters of last year severely affected the carmaker’s ability to source the parts and components required to support demand as customers returned to the market.
With these events behind the company, executives there are looking forward to delivering the vehicles customers have been waiting for.
Honda, IHS notes, has introduced a series of new models across various regions, including the new CR-V sport utility vehicle in North and South America (European launch of this model is due in late 2012), two new saloon and hatchback Civic models respectively in North America and Europe and the Brio city car in Southeast Asia. Honda hopes that these and other new models will bring customers back to Honda showrooms, which over the past 18 months have simply not had enough vehicles to fill every order.
Unfortunately for Honda, while they have not been producing vehicles, other carmakers have moved in to take over the market share left vacant by the Japanese company. Of particular concern for Honda are Hyundai Motor Company and Kia Motors. In virtually every major automotive region around the world, Hyundai sales have increased largely at the expense of Honda sales, IHS maintains. Further, the study says, the quality of Hyundai vehicles is catching up to that of Honda, which used to have the sub-premium sector to itself. Combined with Hyundai’s attractive pricing, extensive standard equipment lists and some of the longest warranties in the business, the question is whether Honda will be able to regain lost share with its current products.
A lot of this depends on Honda’s suppliers, which according to various surveys conducted by IHS Automotive SupplierBusiness are some of the most satisfied when it comes to the supplier/OEM partnership. The question now, IHS says, is whether Honda can leverage these positive relationships in order to further improve finished vehicle quality, and if this will be enough to regain the company’s former market position.
See also: INTERVIEW: Ken Keir, Executive Vice-President, Honda Motor Europe
