Honda 2014 Annual Report Download - page 11

exclusively for the Indian market, where demand for diesel
models is high. We expect new growth opportunities for
Honda with the introduction of this highly competitive diesel
powertrain in India.
We introduced Honda MOBILIO targeting the market for
MPVs (multi-purpose vehicle) which have been very popular in
Indonesia. We conducted a thorough survey and research to
understand local needs and realized affordable prices through
various efforts including an initiative to increase local content.
The CRIDER is receiving widespread attention in China as a
vehicle that was developed exclusively for China in China. We
are planning to maintain our aggressive pace of new model
introductions in China, including the introduction of more
locally-developed models in the future.
We advanced our product development capability beyond
what we could possibly do under the traditional development
system whose focus was more on major markets in
advanced nations. The new approach enables us to deliver
products that accommodate the needs of our customers in
each region and further increases the growth potential of our
automobile business.
Advancing the regional autonomy of manu-
facturing through the fusion of development,
production and purchasing
While advancing the production of global models, we also are
promoting a regional production approach which fuses
together development, production and purchasing in each
region so that we can better fulfill the needs of our customers
in each region. As a part of this initiative, we have already
introduced several new models including the N Series in Japan,
Amaze in India, Honda MOBILIO in Indonesia and CRIDER in
China. These models are being well received by our customers
and contributing to an increase in our automobile sales.
The N Series mini-vehicles significantly enhanced the
presence of Honda mini-vehicles in the Japanese automobile
market where the ratio of mini-vehicle sales to overall automo-
bile sales is increasing. The N-BOX Series has been especially
well received by a large number of customers due to its excel-
lent features including class-top cabin space and outstanding
fuel economy. The N-BOX Series has continued as the
industry’s best-selling mini-vehicle in Japan for the second
consecutive year as of the fiscal year ended March 31, 2014.
We believe that it is an extremely important step for Honda
to establish a strong position in Japan, the home market for
Honda, in order to realize the continued growth of Honda on a
global basis. While focusing mainly on N Series mini-vehicles
and compact cars such as Fit and VEZEL, we will continue
strengthening our sales capability in Japan, so that Japan
operations can maintain self reliance and demon-
strate strong leadership.
The Amaze, which we introduced in
India, is a model based on the Brio,
which was developed under the
leadership of our R&D operation in
Thailand. The Amaze is equipped
with a 1.5-liter i-DTEC diesel
engine which was newly-developed
Automobile Business
Global strategy that enables us to create core
models with strong competitiveness on a
global basis
Against a backdrop of heightened environmental awareness,
demand for small-sized cars is expected to continue to grow
in automobile markets around the world. In the midst of such
a market trend, the Global Compact Series, namely Fit, VEZEL
and City, has been the core of Honda’s global strategy. The Fit
underwent a full model change and went on sale in Japan in
September 2013. To prepare for this, we opened the Yorii
automobile plant of the Saitama Factory and a second plant in
Mexico. Both plants are dedicated to the production of small-
sized vehicles in Japan and North America, respectively.
Designing these new plants exclusively for the production of
small-sized vehicles, Honda has established a more rational
and efficient production system. Moreover, Honda realized a
production system that achieves both a highly competitive cost
structure and vehicle specifications that fulfill the needs of
customers in each region by establishing an efficient global
parts sourcing structure in addition to utilizing the existing
procurement and production infrastructure in each region.
Going forward, we will increase our competitive strengths in
the area of small-sized vehicles by renovating every aspect of
small car production including development, production and
purchasing and introducing such renovated systems and
structures to our existing production plants around the world.
Furthermore, by leveraging our experience in the transfor-
mation of our global operations, which started with the devel-
opment of the all-new Fit (Jazz), we will improve production
efficiency at existing plants that produce Civic, Accord and
other models. At Sayama Plant of the Saitama Factory, we
will cultivate a new set of technical expertise and evolve it to
production operations in North America and other regions. By
doing so, we will further advance Honda’s art of manufactur-
ing and enhance its competitive strengths.
CRIDER (China)
Honda Motor Co., Ltd. Annual Report 2014 10
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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