Honda targets more than 12% market share in 2015

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KUALA LUMPUR (Jan 21): Honda Malaysia Sdn Bhd is aiming to increase its share in the local car market to more than 12% in 2015, with a sales target of 85,000 units.

In 2014, the company recorded a 50% year-on-year growth with sales of 77,485 units, which has exceeded its target of 76,000 units.

In a statement today, the local branch of Honda Motor Japan noted its last year’s sales translated to an increased market share of 11.6%, against the estimated total industry volume (TIV) of 667,000 units.

This has cemented the company’s number one position in the non-national passenger vehicle segment, for the first time in its history. In 2013, its market share was only 7.9%.

Honda Malaysia managing director and chief executive officer Yoichiro Ueno attributed the brisk sales performance to brand trust among Malaysians.

“Three years ago, Honda Malaysia set a mid-term strategy to elevate our business to 100,000 units and started our preparation for enhancing the competitiveness of our products, increasing production capacity and expanding our dealer network,” Ueno said.

It noted the successful launches of entry models such as the All-New City and All-New Jazz received a great response from the market and contributed nearly 70% of Honda’s sales last year.

Since its launch in March last year and until December, the Honda City has elevated to the best-selling model in the Non-National B-segment, whereas the Jazz led the Non-National Hatchback segment.

The Honda CR-V and Accord also continued to be the best-selling models in their respective segments, the statement read.

Realising competitive pricing, Honda Malaysia increased its production capacity with the opening of its second line in Malacca, which allowed the company to meet the anticipated increase in sales with a shorter product-to-market time, with the ability to produce 100,000 units per year.

Honda Malaysia anticipates TIV will increase from 667,000 units last year to 697,000 units for 2015, with a 4.5% year-on-year growth.

It said 2015 will be a year of tough competition and rapid market movements, and noted it is ready to challenge itself to maintain its sales momentum from 2014.

The company is targeting to increase its dealers from the current number of 77 to 90 by 2016, and also increase the number of Body and Paint Centres to 18.