Excerpts:
Myrepublica.com: How is the global market treating Honda, especially while most car companies are going through rough roads?
Tatsuya Natsume: The car market has suffered a lot lately, especially in US, which is the world´s largest market. In 2007, 16 million vehicles were sold there. Now that has dropped to around 10 million. We have a share of 10 percent in the US market.
Myrepublica.com: But compared to companies like GM and other companies in life-support, you haven´t suffered as much. Why is that? With the world abuzz with talks of ´green shoot´, are you seeing signs of things getting better?
Natsume: Yes, we were luckier as these companies were known for their large SUVs while our product portfolio consists of smaller fuel efficient cars. So this helped us a lot. But our product portfolio has been refreshed and thanks to subsidies provided in Europe, Japan, China, India and other emerging nations, there are signs of recovery. So now it is time to expand and we have the supply capacity. It is time to grow.
Myrepublica.com: What markets are you going to look at?
Natsume: The future is in these emerging countries and Europe. China is in track to be the number one target for car manufacturers. In the first half of 2009, sales figures in China (at 6.1 million) surpassed the US. The rest of Asia is also promising. We have added major factories in Thailand and India plus smaller ones in other countries including Pakistan. Things are looking good.
Myrepublica.com: Honda is one of the pioneers in affordable hybrid cars (It sold the first hybrid car in US, in 1999). How is it doing in that segment? Any plans to bring them to South Asia?
Natsume: The Honda Insight has been a great success. Since its new generation was launched in Japan in March, we are selling 10,000 units a month. We are concentrating on Japan, US and Europe for now. Our output is not able to meet the current demand. When we have more production capacity, maybe then we will look at other countries.
Myrepublica.com: What do you think are the Honda Jazz´s USPs?
Natsume: I think the Jazz is a great car because Honda has managed to find the perfect balance between the most conflicting factors in this model. It has a compact exterior, but inside it is big and spacious. Its engine is peppy yet fuel efficient. The Jazz is sporty, yet very comfortable. Also it is one of the safest cars around, encompassing some of the latest in car safety technology.
Myrepublica.com: How has the Jazz performed in India. What do you expect from the Nepali market?
Natsume: We launched Jazz in India in June this year and 2,000 units have already been sent to customers and 3,000 to dealers. Its reputation is very good in India. According to a recent survey, Indians look at three aspects while choosing a car: brand, space and comfort and fuel efficiency. The Jazz has aced in all three aspects in the Indian market. It is a Honda, a very respected brand. It is all about space and its fuel efficiency of 16.1 kilometers per liter. Its air-conditioning has been verified by ARAI. In highways, customers have said they even got around 20 kmpl. Although I don´t expect the same figures in Nepal, it being a very small market, I think it will do very well here and be loved very soon.
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