Honda sets target of 90,000 units sales for 2016 with launch of two new models

KUALA LUMPUR, March 14 — Honda Malaysia Sdn Bhd is optimistic about the 2016 automotive market in Malaysia, forecasting a total TIV (Total Industry Volume) of 630,000 units.

Having achieved a total of 94,902 units for 2015, Honda Malaysia has set itself a target of 90,000 units for 2016.

The launch of two new models, one of which is a replacement model, while the other is a totally new model which is expected to create a new and exciting segment are expected to boost sales and buck the trend.

Speaking at a gathering for media at Subang Jaya on 10^th March, managing director and chief executive officer of Honda Malaysia Yoichiro Ueno said, “2015 was a challenging year for the Malaysian Automotive Industry as we experienced economic slowdown due to the weakening of Malaysian Ringgit, Goods and Services Tax (GST) implementation and drop in oil price.

The Total Industry Volume (TIV) in Malaysia was at 666,674 units which (is) almost flat from the previous year. Despite the tough and competitive market situation, Honda could still generate great results and 2015 became the most memorable year for Honda Malaysia.”

“For the first time, we successfully became No.1 in the Non-National Segment with record sales of 94,902 units that translates to 22 per cent year-on-year growth capturing 14.2 per cent market share.

“In December 2015, our sales reached an all-time monthly record of 10,741 units, the first time to reach 5 digits,” added Ueno.

Honda launched two SUV models in 2015.

Both the CR-V and the HR-V were welcomed by Malaysian customers and were on the forefront of the SUV segments.

The HR-V is a FWD (Front-Wheel Drive) Crossover SUV that created a new wave of customers for Honda with its attractive design and clever maximizing of usable interior and luggage space.

There was also strong market demand for City and Jazz which contributed about 58 per cent of total sales.

Both models are currently still leading in their respective segments. Honda also successfully penetrated the East Malaysia region which contributed the highest sales growth of 36 per cent compared to the previous year.

Moving forward in 2016, Honda has set the sales target at 90,000 units. This is despite a forecasted decrease in TIV of between 4 per cent to 5 per cent or a total 630,000 to 640,000 units for 2016 due to the market conditions fall in crude oil price and depreciation of the Malaysian Ringgit.

Despite a drop in total TIV in the first two months of 2016, Honda is maintaining the 90K target to obtain a strong presence in Malaysia.

The launch of the two new Completely Knock-Down (CKD) models to be equipped with advanced features is expected to support the early shortfall.

“Our focus is to continue to achieve highest customer satisfaction by enhancing the Honda brand and creating excellent customer experiences.

“We will increase our dealerships and Body and Paint (BP) Centres to reach and serve more customers across the nation. We are targeting to increase to 95 dealers and 20 BP Centres, up from the current 87 and 14 respectively.

“We will also introduce 2S Satellite dealers to reach out to customers in sub-urban areas. We aim to provide professional after-sales services to all our customers regardless of the areas they live,” added Ueno.

As for East Malaysia region, Honda will continue to invest and expand their presence to further penetrate the market.

“In November 2015, we successfully opened our Regional Office in Kota Kinabalu to enhance and support the operation in East Malaysia.

“We will be opening a technical training centre in order to provide intensive trainings to improve the skills of service technicians,” said Ueno.