Honda Life Sales On Top Gear

Honda Motor Co Ltd grabbed a bigger share of Japans small-car market last month as its newly launched Life model proved a hit with cash-strapped Japanese consumers. According to data unveiled on Thursday by the Japan Mini Vehicle Association, Honda outdid domestic rival Mitsubishi Motors Corp in minivehicle sales for the first time in nearly four years.

Hondas sales in the category, which covers vehicles with an engine size of 660 cc or less, increased by more than 50 percent in May to 16,036 units, thanks to the introduction of the new model. Hondas sales rose to become the third highest in the sector after those of Suzuki MotorCorp and Daihatsu Motor Co Ltd. Mitsubishi fell to the fourth place, its sales sliding a painful 20.6 percent to 15,520 units. Hondas share in the domestic minicar market rose to 14.7 percent from 8.0 percent a year earlier, while all other inicar makers, except Suzuki, lost market share.

 

Hondas impressive advance came despite a nearly 15 percent year-on-year slump in overall minivehicle sales in Japan in the month to 109,058 units. Japanese consumers have tightened their purse strings since an increase in the national sales tax from three percent to five percent on April 1. Despite the current tough situation, we are very satisfied with our May sales. It was not just the launch of the Life, we increased sales of the Acty mini truck as well we hope the robust sales will continue, a Honda spokesman said.

Honda said it received about 30,000 orders for the Life in the first month after its launch on April 27, far exceeding the firms monthly sales target of 8,000 units.

The Life is the first completely new car Honda has launched in the category since March 1993. Suzukis share of the minivehicle market rose to 34.3 per cent in May from 33.3 percent a year ago, aided by sales of its Wagon R, a partially remodelled version of which was launched in early May.

Honda is aiming for a 12 percent share of the minivehicle for the whole year to March 31, 1998, or 90,000 units, compared with 10 percent last year, when it sold 161,000 units. Honda is the only maker that has launched a wholly new minicar model this year, as despite the attractions of the new model effect or a surge in orders associated with brand-new models makers have generally been hesitant about introducing new minivehicles ahead of changes in Japans vehicle classifications next year.

The classifications are set to change in October 1998 to allow makers to produce vehicles with longer and wider bodies in order to improve collision safety.