Honda chairman sees growth potential In Southeast Asia<\/p>\n
BANGKOK (Dow Jones): Honda Motor Co.'s (HMC or 7267) chairman
\nsaid Wednesday the company plans to pump more resources into
\nSoutheast Asia to meet new demand as the region's economies
\nrecover.<\/p>\n
\"The economy of Thailand is on the recovery path, as are
\neconomies of other Asean markets,\" Yoshihide Munekuni told
\nreporters.<\/p>\n
\"Honda will try to invest more to adjust our business strategy
\nto meet with the economic recovery in ASEAN,\" he said, adding the
\ncompany planned to launch more new products and search for new
\nmarkets.<\/p>\n
Later Wednesday, Munekuni will meet with other chief
\nexecutives from international companies and government ministers
\nat a business forum.<\/p>\n
The event aims to promote the Board of Investment's trade fair
\nwhich will showcase Thai products and investment opportunities.
\nThe fair runs from Thursday until Feb. 17.<\/p>\n
Asian Honda Motor Co., the Japanese car maker's Bangkok-based
\nregional production center, expects Thailand's passenger car
\nmarket to grow at least 20 percent on year in 2000, said the
\nunit's president, Satoshi Toshida.<\/p>\n
Honda will increase the production of passenger cars this year
\nfrom its Thai facilities to meet the new demand, he added.<\/p>\n
Last year, the company produced at half of its full 60,000
\nunits per year capacity, running on only one working shift.<\/p>\n
\"This year we will increase our production capacity from one
\nworking shift last year to two shifts,\" Toshida said, adding that
\nthis would allow full capacity production if demand continues to
\ngrow.<\/p>\n
Thailand's motorcycle market should grow by around 15 percent
\nto 20 percent this year, he added. Honda hopes to increase its
\nproduction of motorcycles from 600,000 units in 1999 to closer to
\nits full capacity of 1 million this year.<\/p>\n
The Japanese car manufacturer also plans to increase exports
\nfrom its Thai operations, through looking for new markets,
\nToshida said.<\/p>\n
Currently, Honda exports about 30 percent of its total
\nproduction to around 50 countries, earning the company 17 billion
\nbaht last year. Australia is the main export market for passenger
\ncars, while motorcycles go mainly to other Asean countries.<\/p>\n
The Association of Southeast Asian Nations, or ASEAN,
\ncomprises Thailand, Malaysia, Singapore, Indonesia, Brunei,
\nVietnam, Myanmar, Laos, Cambodia and the Philippines.<\/p>\n
Honda employs 6,000 people in Thailand, where it had the
\nsecond largest share of the domestic passenger car market last
\nyear, accounting for 30 percent of total sales. Toyota Motor
\nCorp. had a 36 percent share of local sales.<\/p>\n
In terms of the overall vehicle sales in Thailand, Honda is
\nthe third largest after Toyota and Isuzu Motors Ltd. (J.IZM)
\nbecause it doesn't produce one-ton pick up trucks which sell well
\nin rural Thailand.<\/p>",
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