Honda Motor Company has decided to go flat out in its motorcycle business in emerging markets like India where there is increasingly strong competition from local players. The company has targeted increasing its annual bike production capacity in Asia (excluding Japan) from the current level of 16 million units to 18 million units by end-2011.
In a recent presentation on Honda's global strategy for the next 10 years, Mr Takanobu Ito, CEO, said, “Today, key competitors in those (emerging) markets are Chinese and Indian makers. In order for Honda to remain a market leader, it must not only maintain the high attractiveness and quality of products but also further improve cost-competitiveness to match the low prices of these competitors.”
http://www.thehindubusinessline.com/2010/07/30/stories/2010073052180200.htm