It is reported that Honda Motor Co plan to increase the import volumes of motorcycle parts from abroad, in order to ensure their competitiveness in domestic market. 

It is reported by integrated media on Sep 23th. Honda Motor Co plan to significantly increase the import volumes of motorcycle parts from abroad, in order to ensure their competitiveness in the shrinking domestic market.

This strategy is expected to create another shock to Japanese parts suppliers. Japanese motorcycle makers are expanding small parts imports which from Taiwan, Thailand and other place.

Sources say that 80% of the parts purchasing capacity by value would be manufactured overseas and 10% higher than now. Which is Honda Motor Co would buy for their domestic motorcycle factories in the next few years. 

It is predict that in 2011, Honda Motor Co would marketed a medium-sized motorcycle and its price would be 10%—30% lower than the small-sized motorcycle which in the market today. 

Honda Motor Co would increase the parts’ proportion which are manufactured overseas. This imported parts would be used in small-sized motorcycles and especially in the best-selling model “Super Cub”. Honda Motor Co’s parts which bought in south-east Asia and other place would be used in “50CC”. Now this type of motorcycle all adopt parts which made in Japan. And “110CC”, which engine and some other parts are imported from Thailand.

In fiscal year 2009, Honda motor co. made 180000 motorcycles in Japan and 15000000 motorcycles in the world because of domestic market was kept on shrinking. At the same time, Honda Motor Co’s total sales of motorcycle were 370000, less than one-third of the fiscal year 1993, which total sales of motorcycle was 1240000.

Honda Motor Co sold many types of small-sized bicycle in Japan which imported from abroad and in 2002, Honda imported scooter “50cc”. Now, most of this scooters which sold in Japan were made in China. In March, Honda Motor Co started to import “125cc” which made in Thailand.

In 2008, Honda Motor Co expanded the motorcycles’ production in their Ozu factory which in Kumamoto-ken. However, Honda Motor Co was not the only corporation which struggling in the domestic motorcycle market.

In fiscal year 2009, Japan’s four largest motorcycle manufacturers’ motorcycle production in Japan was 600000 and sales were only 370000. Among the sales there was 320000 small sized motorcycles and about half of these were made in Japan.

Small-sized model “125cc” and some other small sized models’ price competition was fierce in the key markets. Most of their prices were from 100000Yen($1175) to 4000000Yen. Manufacturers including Honda imported some types of motorcycles from other countries of lower production costs.

Honda Motor Co sold many types of small-sized bicycle in Japan which imported from abroad and in 2002, Honda imported scooter “50cc”. Now, most of this scooters which sold in Japan were made in China. In March, Honda Motor Co started to import “125cc” which made in Thailand.

Suzuki Motor Corp is importing some products from Taiwan. The imports of large motorcycle will gradually increase from abroad. Kawasaki Heavy Industries Ltd is kept on importing “400cc” from August.