Honda motor manufacturers do something rarely done motor manufacturers namely lower prices all its products in Japan. Steps taken Honda has never been seen since 10 years.
The plan of this price cut is to hook young consumers now being targeted by Honda. And as a result, more than 45 models Honda will be exposed to price cuts in the next three years.
As quoted from the Motorcycle detikOto, Thursday (07/08/2010), this price reduction will range in number from 10 to 30 percent and will take effect when the model is a new version comes out. Whether it’s a full change or minor change.
For example, one of the Honda Super Cub 50 plan will get the biggest piece that reached number 40 000 yen, or about USD 4.1 million. While the 250 cc Honda Forza will likely get a piece of 120 000 yen, or about USD 12.38 million
To compensate for these price declines, Honda plans to boost production at facilities in other Asian countries where the cost is lower.
Because Honda has recently announced two of their factories in Vietnam will increase production by 500,000 units of motorcycles up to 2 million units per year. Any development costs will also be cut by reducing the time used to develop new models from 1.5 to two years.
Now with Honda’s market share in Japan reached 48 percent, Honda’s move is certainly going to put pressure for competitors to follow. Moreover, the Japanese motorcycle market as a whole decreased 27.1 percent in 2009.
But it is unknown whether the decline in prices in Japan’s Honda Motor will affect the price of Honda motorcycles in other countries, including Indonesia.