Honda not likely to move auto parts plant to Phl

MANILA, Philippines - Honda Cars Philippines Inc. (HCPI) is not inclined to transfer their auto parts plant in the Philippines given the small domestic market in the country.

According to HCPI president Tatsuya Natsume, “car sales in the Philippines is not high enough to justify the investment.”

Natsume pointed out that while Thailand suffered recent massive flooding, Thailand’s auto sales is expected to hit 860,000 units in 2011, while the Philippines recorded sales of only 141,616 units last year.

Despite the low sales volume in the Philippines, Natsume is predicting double digit growth for the auto industry this year.

Auto sales for the local automotive industry slid four percent in 2011.

For Honda, Natsume said, they would definitely exceed last year’s sales figure.

Honda sold 11,611 units last year. This was 30.1 percent lower than the 16,604 units sold in 2010.

Natsume said they would like to go back to their 2010 sales levels this year.

Honda has been having supply problems, especially since the CRV, Jazz and the Accord are imported from Thailand.

Currently, Natsume said, they have no models to sell in their dealerships. However, Natsume assured, they have already ordered Jazz, Accord and the all new Civic from their Japan plant and delivery is expected to arrive in February.

“We have almost nothing,” Natsume said when asked about their inventory. “The cars will start to come by February.”

Natsume said that while they currently have no inventory, their dealerships remain open for services.

On their Thailand plant, Natsume said, is not certain when it would be fully operational.

“The supply chain is still in the recovery stage, ” he said.

Manufacturing operations in Honda’s Sta. Rosa Plant, Natsume said, started this month.

The all new Honda City will be produced in Sta. Rosa.

Honda plans to produce 8,000 units locally for the entire year.

The local content of the City is 40 percent, while 60 percent will come from China and India since the Thailand plant is still closed.

The City, Natsume said, is expected to be their biggest seller.

Units will be available mid-February. The City is priced between P746,000 to P836,000.

Next month, Honda is expected to launch the All New Civic.