Honda 2013 Annual Report Download - page 10

and quality control divisions. Our third factory in India
began operating in June 2013, bolstering the frame-
work for satisfying local customer expectations. We
aim to further expand our presence in India, where
demand is forecast to grow rapidly.
In March 2013, as part of developing new markets
to undergird growth, we established Honda’s third
African motorcycle subsidiary in Kenya. Our first two
operating bases are in Nigeria and South Africa. In
Kenya, we plan to take advantage of our global pro-
curement strength to create simplified local assembly
capabilities so that we can offer local customers high-quality products at an affordable price.
Looking ahead, we will continue to build Honda’s presence in Africa.
To meet the demands for each market, our approach is to “start small and grow big.” For
instance, in Brazil we are now developing models with larger engines to cater to new and unmet
needs. In Asia, meanwhile, we established a motorcycle subsidiary in Bangladesh, where growth
is expected, and began motorcycle sales in Myanmar.
Leveraging global strengths to provide new value
We launched production and sales of the PCX series of 125cc-class scooters in September
2009 in Thailand, where our manufacturing is extremely cost competitive. Exports to developed
countries began in March 2010. Competitively priced due to local production, the superior envi-
ronmental performance and high finish quality offered in the PCX range has been well received
in Europe, Japan and other developed markets. In June 2012, we began exporting 150cc-
engine models to meet the growing demand. In November 2012, the first of the new CB500
series middleweight motorbikes rolled off our Thai production lines. We plan to export this
series as a global model for a wide range of markets across Asia and the developed world.
We aim to boost our presence in the “fun” segment of the motorcycle market by leveraging
Honda’s global strengths and offering new value with originality at an affordable price. As an
example, in the middleweight motorcycle segment we introduced our New Mid Concept series
of 700cc-class bikes. In February 2013, we launched the new-concept CTX series of 700cc
cruisers. The name, which stands for “Comfort Technology Experience,” sums up the appeal
of a bike that is designed to be fun to ride, offering pleasure, comfort and maneuverability with
dynamic styling.
Going forward, in addition to responding to market demand, we will continue to seek to offer
new value to customers with the Honda brand.
Automobile Business
Responding promptly to customer needs around the world by
leveraging global operation reform
In the automobile business, to address the needs of
customers around the world quickly, we are reforming
our global operations so that we can make vehicles
with top-level specifications at a competitive cost.
These reforms entail several initiatives. The first is
concurrent development across all six regions from
the same early stage of model development. The
second is adoption of locally optimized design draw-
ings, which will enable Honda to create products
designed to cater specifically to local needs, while
using local sourcing and production infrastructure to
the maximum extent possible. Third, we aim to
Dream Neo (India)
Annual Report 201308