Honda exports from Thailand grow 4% in 2008

Asian Honda Motor Co., Ltd., Honda’s Bangkok-based Asia & Oceania Regional Headquarters, today reported that Honda’s product exports from Thailand in 2008 reached 104,583 million baht, representing a 4% increase over 2007. Exports were driven by automobile CBU and CKD units which accounted for 65,091 million baht, or 62% of total export value; followed by motorcycle CBU and CKD units and part kit exports at 23,881 million baht, representing 23% of the total value; and power products at 10,128 million baht, or 10% of the total value. Remaining exports included spare parts, accessories and dies & molds worth 5,483 million baht, or 5% of the total export value.

Mr. Fumihiko Ike, President & CEO, Asian Honda Motor Co., Ltd. stated that Honda has consistently grown the value and volume of product exports from Thailand since it first started exporting in 1987, contributing to the strength and durability of business in Thailand as well as trust in product quality. To date, the cumulative value of Honda exports from Thailand amounts to 555,012 million baht. However, the global economic crisis has led to a decline in Honda’s exports since late of last year.

“Export growth has slowed down since Q3 2008 due to the global financial crisis which has affected the entire world. In Q4 2008, automobile and power products export value faced a decrease while motorcycle export value remained little changed. Total export value of Honda products in Q4 dropped 12% over the same period in 2007. However, the annual export value of Honda’s products in 2008 is 4% higher than 2007” Mr. Ike said.

Automobiles:
In 2008, the total value of Honda’s automobile CBU and CKD exports remained stable. Automobile CKD exports increased 13% to 26,031 million baht due to the start-up of production of new models such as the Jazz in Brazil and the City in India. For automobile CBUs, Honda continues to export five models, which are the City, Jazz, Civic, Accord and CR-V, to over 30 countries worldwide. In 2008, automobile CBU exports were 72,497 units, which is a 6% drop in value to 39,060 million baht. The decline in exports is largely attributable to the difficulty in securing auto loans in several major markets due to the credit crunch as well as a global trend towards smaller vehicles resulting in a reduction of orders for large vehicles.


Motorcycles:
The total value of Honda’s motorcycle CBU and CKD exports in 2008 increased by 10% to 23,881 million baht. The exports of motorcycle CKD units, including part kits, increased 14% by value to 22,298 million baht, thanks mainly to new model production expansion in ASEAN countries, particularly in Vietnam, Indonesia and Cambodia. In contrast, motorcycle CBU exports fell 22% in value to 1,584 million baht, primarily due to reduced demand in Europe.

Power Products:
Thailand is Honda’s primary global production and export base for its power products, which are currently exported to over 80 countries around the world. Exports of power products decreased 2% by volume during 2008 as a result of the global financial crisis affecting the general market, especially Honda’s key markets in Europe and the United States. Total power product exports for 2008 were 1,755,132 units, worth a value of 10,128 million baht.