Honda plans assembling plant in Dar

Honda Japan is to introduce a new motorcycle in the local market to cope with the current financial hardship and compete with the dominant Chinese products.

The firm’s Senior Managing Director Tatsuhiro Oyama told the Daily News in Dar es Salaam over the weekend that the new motorcycle was manufactured specifically for the growing African market. 

He hinted that Honda Japan plans to partner with Quality Motors Limited, a Tanzanian firm, to assemble and sell Honda products in the country.

Mr Oyama is in the country to oversee the performance of the company’s products and look into new ways to tackle competitors. He said local assembly of the Honda envisages reducing cost of production.

“We are seriously thinking of partnering with Quality Motors to implement this strategy that will greatly improve our sales in the region as well as help in lowering prices of our motorcycles,” said Mr Oyama.   

The MD noted that last year Honda sold over 15 million units worldwide, the great achievement that he attributed to the firm’s reign in manufactures and sales of motorcycles, worldwide.

He however said that the African market was not vibrant last year, with the company managing to sell only 50,000 units, with Nigeria being the biggest consumer in Africa.
Honda's CRF50F top selling motorcycle in 2011

He blamed poor performance in Africa on delays in terms of sales network and lack of a specific product designed for the African market. But, to overcome the problem, the company has developed a new CB125 model specifically for the African market.

“We have started to come up with African products built for Africa, and we will continue developing new products which are affordable and suitable for the continent. We will also try to expand our sales networks in Africa,” he said.

Honda Tanzania General Manager Kadaba Madhusudan said the new Honda motorcycle will be launched early February, adding that his company has ordered enough units for the Tanzanian market, with about 600 units already in the country.

Madhusudan, speaking after the official launch of Honda Kamata Corner shop in Dar es Salaam, said apart from doing business, Honda is also determined to contribute towards uplifting the Tanzanian economy.

With strength and stability, Honda led the motorcycle market achieving first, second and third top models and overall top market share in 2011.

According to the 2011 FCAI retail report, Honda’s CRF50F was the top selling motorcycle with the CT110 and CBR250R following closely.

 Although Tanzania has the second highest projected average annual GDP growth over the next five years among the East African countries, it also has one of the lowest levels of car and motorcycles ownership.  

This suggests that there is considerable potential to be tapped in the Tanzanian new vehicle and motorcycles market.
Source: The Daily News print edition: reported by Anthony Tambwe

Share on Google Plus

About Abduel Elinaza

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.