Honda to see 19% growth in exports

Business News - Thursday December 20, 2007

INDUSTRY

Honda to see 19% growth in exports

SANTAN SANTIVIMOLNAT

Exports of Honda motorcycles, automobiles and power products are expected to increase in value by 19% over last year to nearly 100 billion baht, according to Asian Honda Motor Co's Bangkok-based Asia and Oceania regional headquarters. 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.

Honda, which has operated in the country for 43 years, achieved key milestones in 2007 in three core products. This year cumulative total production of motorcycles reached 15 million units, power products reached 10 million units and automobiles reached one million units, said president Tatsuhiro Oyama.

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 98.8 billion baht, a 19% increase over 2006. Of this amount, automobile exports will reach 63.9 billion baht, representing 65% of the total value. Motorcycle exports will account for 21.2 billion baht or 21% of total export value. Power product exports will be worth 10.6 billion baht, 11% of the total export value. Spare parts and accessories will make up the remaining 3%, or 3.1 billion 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 40.8 billion baht. Growth is mainly driven by market expansion in Australia, the Philippines and Indonesia.

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.

Bangkok Post