Honda 2011 Annual Report Download - page 11

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Good Products at Affordable Prices
Among motorcycles, there are “commuter” types that play an essential role in providing
people with basic transportation, and there are “fun” types that people ride for the joy and
pleasure of riding. The market for commuter types in the emerging countries is expanding
along with economic growth. With this trend as a driving force, Honda sold approximately
17,952,000 motorcycles last year, the largest number in our history. The principal markets
for motorcycles are China, India, Indonesia and other countries that have large popula-
tions, and further growth in sales is expected in these countries. In addition, the nations in
the African region, especially Nigeria, are new and expanding markets, and we believe they
will provide support for Honda’s growth.
To respond to this strong demand for commuter-type motorcycles, we believe that
more and more affordable prices will be important. In recent years, Honda has taken initia-
tives to procure parts globally. We have standardized the basic architecture for models in
the region to enable us to enjoy economies of scale in parts procurement. We have also
promoted improvement activities among local parts manufacturers to set price standards
globally as we have also worked to realize synergies.
Motorcycles
In recent years, Honda has been experiencing a period of major change in business
conditions. Key factors causing this change have been increased awareness on a global
scale of issues related to the environment and economic growth in emerging countries,
which has brought structural change to the world economy. For Honda to continue to
grow and develop, it will be important to create and commercialize advanced envi-
ronmental technologies, take quick action to strengthen our business position in the
markets of emerging countries and, at the same time, restructure our corporate organi-
zation to secure profitability.
With this awareness, we have positioned the next 10 years as a time for Honda
to reform in the direction of “delivering good products to our customers, with speed,
affordability and low CO2 emissions”, and right now we are taking aggressive action to
do just that. Delivering “good products” means that Honda must create attractive prod-
ucts that customers think are necessary based on our original technology, knowledge
and ingenuity. We must do this “with speed” without keeping our customers waiting,
and we must deliver them at affordable prices that will make customers think, “I’m glad
I bought a Honda”. I believe this is what we want to achieve, and, as a “personal mobil-
ity manufacturer”, we must make more-aggressive efforts than ever before to make
major reductions in CO2 emissions.
Initiatives Going Forward
9