Honda 2014 Annual Report Download - page 10

Motorcycle Business
Strengthening the competitiveness of our
products by simultaneously enhancing prod-
uct performance and achieving cost reduction
In the motorcycle business, our unit sales is continuously
expanding due to strong demand for commuter models in
emerging markets. This is especially true in India, the world’s
largest market for commuter-type motorcycles, where we
have been significantly increasing unit sales by introducing
highly competitive products in the 100cc segment, the largest
segment within the motorcycle market in India.
In the area of motorcycle production, we have already
expanded the annual production capacity of the No. 3 plant in
India, which became operational in May 2013, to 4.6 million
units. Moreover, in February of this year, we made a decision
to build a No. 4 plant to accommodate the further growth of
the motorcycle market in India. The No. 4 plant is scheduled
to become operational in the second half of the fiscal year
ending March 31, 2016 with an annual production capacity of
1.2 million units. Combined with the capacity of existing
plants, Honda’s overall annual motorcycle production capacity
in India will reach 5.8 million units. Furthermore, as a part of
our efforts to accommodate vigorous demand for motorcycles
in emerging nations, we are currently building a No. 4 plant in
Indonesia, as well.
In addition to expanding our production capacity, we are
striving to increase the competitive strength of our products.
Our efforts include enhancement of the product line-up and
improvement of the fuel economy of scooter models, for
which demand has increased rapidly in recent years. The
improvement of fuel economy and overall environmental perfor-
mance enables our customers to reduce gasoline consump-
tion and CO2 emissions, and we believe that is an added value
that Honda can provide to our customers and their local com-
munities. Furthermore, in the area of manufacturing, we are
striving to reduce costs by maximizing mass- production scale
merit by sharing common components while promoting the
unique characteristics in each of our diverse products. We will
continue fulfilling the expectations of our customers by further
highlighting uniqueness and through the improved perfor-
mance of our products while realizing more affordable prices.
Highlighting the Honda brand by taking on
new challenges in the art of manufacturing
In the “FUN” segment that consists mainly of medium-to-
large-sized motorcycles, we have been enhancing our product
line-up while positioning several key flagship models. Such
models include the Gold Wing ultimate touring machine
powered by Honda’s proprietary, horizontally opposed,
6- cylinder 1,800cc engine, the CB1100 road sports model
that possesses traditional appeal and the VFR1200F sports
tourer that fuses together advanced technologies and unique
styling. In further response to the diversifying tastes and pref-
erences of our customers, this line-up of FUN models was
even further enhanced with the addition of the all-new
CTX1300 cruiser in February 2014, and the NM4-01, a new
concept model unveiled in April 2014.
The “FUN” models are designed to realize high recreational
values in pursuit of the joy of riding and ownership. At the
same time, these models represent the identity of Honda
motorcycle products. For that reason, we believe it is critical
for us to highlight the Honda brand by being creative and
taking on new challenges as we pursue the art of manufactur-
ing. Toward this end, in order to heighten the level of our
capability as a manufacturer, we consolidated our motorcycle
development and procurement divisions at Kumamoto Factory.
In addition, we newly appointed a Representative of Motor-
cycle Development, Purchasing, and Production to establish a
structure which enables the speedy and compact operation
of our motorcycle business.
Moreover, under this new organizational structure, we will
strengthen the development of 250cc to 400cc medium-sized
motorcycles so that we can also fulfill increasing demand for
larger-sized models in emerging markets. We will strive to
further increase the efficiency of our motorcycle business in
the “FUN” segment by highlighting Honda’s identity with large-
sized motorcycles and preparing for the future growth of the
market for medium-sized models.
NM4-01 (Japan)
Honda Motor Co., Ltd. Annual Report 2014 09
3 To Our Shareholders
1 The Power of Dreams
2 Financial Highlights
4 Review of Operations
5 Corporate Governance
6 Financial Section
7
Investor Relations
Information
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