Honda Motorcycles to Expand in Vietnam
Honda Vietnam Motorcycles
Honda motorcycle operations are already strong in Vietnam, the Japan two-wheel marquee already producing 2 million units a year.
But due to steady growth in the Vietnam motorcycle market, Honda Vietnam Co., LTD (HVN) has plans to build a third plant to expand it’s motorcycle production by 500,000 units, thus increasing total production to 2.5-million units a year.
The third Honda Vietnam plant will be built in the Ha Nam Province, about 40 kilometers south of hanoi, is expected to cost 9.6 billion yen (USD: $120 million). Honda expects the plant to be operating in the second half of 2012.
According to Honda, the Vietnam motorcycle market has grown 20-percent from 2009 to 2010, reaching 2.69 million units in 2010. This makes it the fourth largest market behind China, India and Indonesia.
Honda Vietnam says: “Motorcycles have been an integral part of people’s daily lives in Vietnam, and further expansion of the market is forecasted as the economy continues to grow. Based on this forecast, HVN determined to build the third plant in order to further strengthen its capability to continue providing products to Vietnamese customers in a timely manner.”
Since the start of production in 1997, HVN’s cumulative motorcycle production has reached 9.6 million units and sales has experienced a year-on-year increase for 14 consecutive years. Moreover, HVN’s market share in Vietnam reached 64 percent in 2010. HVN will continue enhancing its product lineup to fulfill the increasingly diversifying customer needs in Vietnam.
Honda will continue maximizing the joy of customers by creating good products with speed, affordability and low CO2 emissions.