2011 Digital Fact Book - Honda

China
Operations Overview
Honda has been at the forefront in introducing new concepts to the Chinese
auto industry. Among them include: establishment of a unique automotive brand
for China; the first full-scale export of passenger cars from China to Europe; and
the establishment of China’s first dedicated auto dealer network with integrated
sales, service and parts supply capabilities.
Honda Motor (China) Investment Co., Ltd. (HMCI), a wholly owned Honda
subsidiary, has consolidated regional headquarters functions and is responsible
for developing Honda’s overall business strategy in China. This includes
facilitating the integration of Honda’s growing operations in China into the
concept of sharing the company’s global resources.
Motorcycle
• Honda motorcycle sales in China, excluding the Sundiro brand, fell 1 percent
to 1.28 million units in 2010.
• Sundiro Honda and Wuyang-Honda have replaced existing plants built in the
1980s, updating production systems and preparing for future expansion of
production capacity. The new plants achieve major improvements in production
efficiency through the introduction of synchronized production and other
systems along with Honda “Green Factory” concepts.
• HMCI established a branch in Shanghai, focusing on motorcycle business.
The Shanghai branch is responsible for the development of Honda’s entire
motorcycle business and product strategies in China, as well as for supporting
marketing, service, quality and procurement for Honda’s motorcycle
subsidiaries in the country.
• Honda exported 295,766 China-made motorcycles to Japan, Africa, the Middle
East and Asia/Oceania countries in 2010.
http://hondanews.com/digitalfactbook
Automobile
• Honda and Acura brand vehicle sales in China rose 13 percent to a sixth
consecutive yearly record of 655,000 units in 2010.
11.1
• Guangzhou Honda in April 2008 announced the establishment of a new
proprietary automotive brand, LI NIAN (Everus), which will see Guangzhou
Honda handling each step of the new model process, including design,
production and sales. Sales of the new brand, targeting younger and
entry-level customers, will be handled through the Guangzhou Honda sales
network. In April 2010, Guangzhou Honda began sales of its new S1 compact
sedan, the first mass-produced model of the LI NIAN brand.
• At the 2011 Shanghai motor show, Honda announced plans to introduce the
Insight, Fit and CR-Z hybrid models, joining the Civic Hybrid in the Chinese
market. Insight will be sold though Dongfeng Honda, while the CR-Z and Fit
hybrid models will be though Guangzhou Honda. The vehicles will initially be
supplied from Japan, as the company makes plans to localize production of
these vehicles in China in the future. Honda also began sales of the U.S.-made
Crosstour in October 2010.
• Honda and the city of Guangzhou and Guangzhou Automobile Group Co., Ltd.
have reached a basic agreement to conduct demonstration testing of Honda
electric vehicles to verify the market potential and ideal infrastructure for
widespread use of EVs in China. Moreover, Honda is working toward the goal
to begin production of EVs in China in 2012.
• Guangzhou Honda began auto production in China with the Accord in 1999 and
now produces the Odyssey minivan, City and Fit. A second auto plant began
operations in September 2006, increasing total production to 360,000 units.
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