East of the emergency expansion: Honda China sales to catch up with Toyota

Posted on 12/13/2016 10:05:53 AM

December 8, Dongfeng Honda third factory construction project in Wuhan Economic and Technological Development Zone officially started. Following the start of the second plant in 2010 after the construction, Dongfeng Honda sales growth driven by expansion again.

Dongben third factory project plan an overall plan, implemented in two phases, a project is expected to be completed and put into operation in 2019, when Dongfeng Honda will add capacity of 120,000 units, and will have a new energy vehicle production capacity.

Dongfeng Honda, deputy general manager, deputy party secretary, Dongfeng Honda Automobile Chengdao Ran accepted the 21st Century Business Herald interview, said: "This year, Dongfeng Honda production capacity, based on the future Dongfeng Honda new product planning and the current development situation, Started the third factory, at the same time, hope Dongfeng Honda in sales to achieve the goal of one million.

Honda this year in China's overall sales growth was significant. As of now, from January to November Honda cumulative sales in China 111.48 million, an increase of 28.3%. In China, Toyota sold more than Toyota, about 14,800, and has achieved a 9-digit double-digit increase. This year, Honda's car sales in China may be the first time beyond Toyota.

Get rid of CR-V dependence

Honda sales this year can be described as a comprehensive upgrade, especially Dongfeng Honda, the growth rate significantly. According to the Association of data show that from January to November this year, Dongfeng Honda cumulative sales of 50.67 million, an increase of 43.2%, the growth rate of China's car sales in November ranked the top 15, the cumulative growth of joint venture brands the largest, only Second to its own brand Geely Automobile.

Dongfeng Honda sales increase in the past, the main source of growth for the SUV models, and this year the car began to force, single-month break million models increased to 3, such as November CR-V sales of 16,400 vehicles , XR-V sales of 17,500, Civic sales of 1.18 million units.

In this regard, executive vice president of Dongfeng Honda, said Chen Binbo: "Civic is Dongfeng Honda introduced the second model, following the CR-V, XR-V two car market performance is successful, Civic will become our third fulcrum. Civic breakthrough, indicating Dongfeng Honda's growth is no longer dependent on the field of SUV, the car will have a breakthrough in the field.According to the current situation, for the Civic this model, Dongfeng Honda will follow a monthly sales target of 1.5 million units to follow up , The deployment of the entire resources to increase the supply.

Civic in Dongfeng Honda new sales after the main force, the next to solve the problem is the lack of capacity. Dongfeng Honda currently has two factories, are located in Wuhan Economic and Technological Development Zone, the total annual capacity of 512,000 units. However, with the increase in sales, this year, Dongfeng Honda has adjusted annual sales target twice, from the original development of the annual sales target of 450,000, and later adjusted to 50 million, and then later adjusted to 560,000.

Although the third factory has been started, but the formal production from the factory there are two years, therefore, Dongfeng Honda growth in the next two years will be limited by capacity. "To enhance production capacity is a relatively large Dongfeng Honda problem, by 2017, based on the current capacity constraints, Dongfeng Honda can only take some production organization on the adjustment, to better meet the 2017 development requirements, but next year will certainly More than 600,000 sales target. "Chen Binbo said.

Honda China's first super Toyota

Since Honda entered China, has been trying to catch up with Toyota, but in terms of product or marketing, Honda and Toyota there is always a gap. However, this year the situation has changed, Honda is not only in the first 11 months of sales catch up with Toyota, and is likely to achieve annual sales beyond.

For Toyota, this year's models are mainly concentrated in the cash model of the replacement, and with the growth of cars and SUV fatigue, Toyota's growth rate slowed down. Especially in the field of SUV, in the past two years continued to sell in small and compact SUV market, Toyota is only a layout of the RAV4, Highlander in the field of large SUV early force, but was later sharp sector, Wei, free light and other models go-ahead.

Toyota has been able to check and balance Honda, mainly Toyota's more comprehensive product line layout, but this advantage is gradually lost. Honda to speed up the launch of new products and products to enhance the power, in addition to Ling Pine, Bin Chi, XR-V explosion models, but also have launched Jed, Gore, Jing Rui, new models, including Dongfeng Honda Models occupy more than half, greatly enriched the product matrix. However, due to 1.6L the following emission-free vehicles such as the purchase of tax policies such as the favorable slope, Dongfeng Honda next year can continue to maintain high growth is still in doubt.

Face the future of China's automobile market, Cheng Road, said: "The slowdown in vehicle growth is in the affirmative, whether first-tier cities or second-tier cities, are in a replacement phase, three-tier cities and even the western four-tier cities into a stage, Three factories put into production, is consistent with our business plan, we have fully considered, including product introduction, competitive analysis.

However, from the slowdown in Toyota can be seen, once the performance of the main truck sales market setback, then the overall impact on the business is relatively large. Dongfeng Honda sales breakthrough, but through the price system adjustment, harvest a certain amount of sales growth, while its brand power has also been affected.

In the high-end market segments, Honda products for the brand competitiveness of the vacancy lay hidden, for example, in large business models, large SUV and other sub-areas, Honda is still vacant, and its luxury brand Acura potential in China Has not been released.

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