Honda takes caution with emerging markets as sales drop
Although it saw a strong sales performance April-June in Asia, Honda Motor Co. said that it is cautious on emerging markets. In the first quarter, sales fell in Japan fell by 24% as sales of the automobile manufacturer's second largest market dropped to 140,000 cars prompted due to government subsidies on green cars ended later the year before. Honda had been aggressive in its global expansion as it plans to open new plants in Japan and Mexico. They also sought to expand in other countries like Thailand and China but they are exercising caution.
While positive, Honda Executive Vice President Tetsuo Iwamura, was wary. "At times we see various big unexpected moves in emerging markets so we are cautious. But automobile and motorbike demand will certainly grow there so we will continue to build foundations for success," he said.
In Thailand, the April-June sales of Honda rose close to 30% to around 59,000 vehicles. This was attributed to the 100,000 orders made before the end of 2012 when there were still subsidies offered by the government for first-time auto buyers.
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