Posts tagged ‘Honda’

05/02/2014

Scooter boom: Young women find gusto on India’s roads | Reuters

\’Plush pink\’ and \’burgundy bliss\’ scooters are the new buzz on India\’s roads, even as the rest of the autos market is sputtering amid an economic slowdown.

Honda Jazz scooter

Honda Jazz scooter (Photo credit: Wikipedia)

The scooters go by names such as \”Pleasure\”, but marketing aside, this new fleet of women-friendly bikes reflects a deeper change in attitude and society in India, and has captured the attention of foreign manufacturers such as Japan\’s Honda Motor Co Ltd and Yamaha Motor.

Young, well-heeled and independent-minded women, who are also conscious of the perils of using public transport, are helping to propel a boom in sales of scooters.

The rising popularity of the scooter comes at a time of nationwide protests against the prevalence of rape and sexual assault in India. In one case, a young female student died after she was gang-raped on a bus in Delhi.

Weighing convenience as well as safety, some young women, and their parents, see the scooter as the best solution for commuting to work, going to college or simply going out to meet friends.

Scooter sales were up nearly 20 percent in the nine months through December, according to Society of Indian Automobile Manufacturers data, easily outpacing the 2.5 percent sales growth of full-size motorcycles. Sales of cars, trucks and buses all fell.

Still, scooters accounted for only 20 percent of India\’s 14 million-unit two-wheeler market in the last financial year. Two wheelers are the most common mode of transport for millions of middle-class Indians.

Both Honda and Yamaha have identified the growth potential in scooters, and are building models designed for women and adding new plants to keep up with demand.

\”College-going girls and working women are really creating this demand-wave in the scooter segment,\” said Abdul Majeed, a partner at PricewaterhouseCoopers India.

\”Housewives are also using scooters to drop (off) kids and buy vegetables,\” Majeed said, adding that he expects strong sales growth to continue and for companies to launch more scooters geared towards women.

Yamaha launched its first Indian scooter designed for women, the Ray, in 2012. The bike sells for around about 47,000 rupees ($750) and comes in colors such as \’starry white\’, \’plush pink\’ and \’burgundy bliss\’. About 70 percent of the women who buy it for themselves are under 30, the company says.

\”They don\’t want to trouble their parents or brothers. They want personal mobility,\” said Roy Kurian, vice president of marketing and sales at Yamaha in India. \”If a guy had to ride then he would have gone for a motorcycle,\” he said.

via Scooter boom: Young women find gusto on India’s roads | Reuters.

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05/10/2012

* Diaoyu islands dispute hammers Japanese car sales in China

If the September drop in sales continues, the future for Japanese cars in China is very bleak indeed. There are lots of competitors both indigenous and foreign that can take up the slack. If Japanese car factories close as a result, the impact on Chinese employment will be non-trivial. So the anti-Japanese sentiment cuts both ways.

South China Morning Post: “Toyota’s sales in China halved last month from August levels, damaged by anti-Japanese sentiment in a row over disputed islands in the East China Sea, the Yomiuri newspaper reported on Friday, citing the carmaker.

Photo

Showroom traffic and sales have plunged at Japanese automakers since violent protests and calls for boycotts of Japanese products broke out across China in mid-September over Japan’s acquisition of a group of disputed islands.

A prolonged sales hit of this scale could threaten profit forecasts at Toyota, Nissan and others as China, the world’s biggest car market, makes up a bigger portion of their global sales. Toyota sold about 75,300 cars in China in August.

As demand evaporates, Toyota, Nissan, Honda and others have been forced to cut back production in recent weeks in a slowing, but still promising Chinese market.

A source told reporters late last month that Toyota’s production cutbacks could extend through November, a move that would almost certainly put the company’s goal of selling 1 million cars in China this year out of reach.

A Toyota spokeswoman in Tokyo declined to confirm the newspaper report, saying the company would announce its Chinese sales for September on Tuesday.

On Thursday, Mazda said its China sales tumbled by more than a third last month from a year earlier, providing the first concrete numbers to point to Japanese automakers’ troubles in China.

via Diaoyus dispute hammers Japanese car sales in China | South China Morning Post.

27/09/2012

* Japanese Car Plants in China: Who’s Feeling the Heat?

WSJ: “Explosive anti-Japanese sentiment in China forced Toyota, Honda and Nissan to idle factories across the country this month. Media reports suggest that fresh shutdowns may be coming again in October.

Halting production is never good news. But who’s got the bigger headache – the Japanese or the Chinese?

There is no question that Toyota, Nissan and Honda will lose sales and market share to competitors. It’s already happening. And lost sales matter because China accounts for 15% of global profits at Toyota and Honda and as much as 25% at Nissan.

And yet, the pain could become even greater for China.

All Japanese cars made in China are produced at joint-venture factories owned on a 50-50 basis with Chinese partners. When the plant doors close, Chinese executives who run those joint ventures will immediately confront two frightening realities: a dramatic drop in revenue and tens of thousands of idle workers.

Take Hong Kong-listed Guangzhou Automobile Co for example. GAC, a subsidiary of the powerful Guangzhou municipality, runs world-class car assembly joint ventures with Honda and Toyota that employs just under 13,000 people.

Guangzhou Honda and Guangzhou Toyota also buy car parts from hundred of suppliers based in Guangdong province that employ tens of thousands of more people. Honda and Toyota products are sold through more than 900 dealers owned by Chinese business people. Count several more thousands of jobs there.

As China steps its way through a delicate political transition expected to formally begin in October, the last thing the leadership in Guangzhou wants to deal with is a crush of workers with too much time on their hands. If an argument between workers at a Foxconn 2038.HK +0.78% plant in Taiyuan can trigger rioting by thousands, imagine what might happen should Guangzhou workers start wondering about future job security.

Guangzhou Automobile isn’t an isolated case.”

via Japanese Car Plants in China: Who’s Feeling the Heat? – China Real Time Report – WSJ.

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