Emerging nations a Honda pillar

Honda has targeted emerging nations in Asia and Africa as the key pillars in strengthening its motorcycle business.

The company's CEO Takanobu Ito has delivered the vision in a mid-year speech, which comes a year after he assumed the top executive post at the Japanese giant.

"In emerging nations, motorcycles are a part of people's daily lives, and giant markets with the overwhelming size of their populations have the potential to grow further and become key pillars of Honda's business," said Ito-san.

"Today, key competitors in those markets are Chinese and Indian makers. In order for Honda to remain as a market leader, Honda must not only maintain the high attractiveness and quality of our products but also further improve cost competitiveness to match the low prices of these competitors."

In addition to producing new models (both gasoline and electric) for markets such as China, Indonesia and Thailand, production capacity will also be increased, mostly via a new 500,000-capacity plant in Indonesia which will become operational in the latter half of 2011.

That will expand production capacity in Indonesia to four million units, and for the whole of Asia (excluding Japan) to 18 million units.

Honda also has burgeoning African markets in its sight, and is planning to launch a new 125cc model in Nigeria mid-2011, using Chinese-made parts and components to remain cost competitive.

Nigeria is the largest motorcycle market in Africa, with annual sales a whopping 800,000 units.