22 August 2009

Honda Production: 2008

Honda is an independent car company that has shunned mergers and buy outs. It hasn't got into manufacturing commercial vehicles either. For all that it is successful by building cars with good engines and reliability.
In 2005, Honda made 3.3 million vehicles and by 2008 4.3 million, so it is going the right way. World market share was up in the same period from 5.4% to 5.9%. Japanese production of Hondas dropped from 37% to 32%, now 1.264 million. Production by other countries are as follows:

USA 25% 990,000
China 12% 475,000
Canada 10% 380,000
UK 6% 230,000
Thailand 4% 160,000
Brazil 3.5% 133,000
Rest 7.5% 227,000

Honda is big enough and international enough to go it alone. I sense the best it can do now is hold the position it has. I cannot see it going on to ever be top car maker in the world, despite that being the intention when Mr Honda diversified in to cars. The world's motorbike markets were conquered, but the motor vehicle industry is bigger and more competitive.

The bottom line: Honda is too conservative to challenge for the top spot.

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