Honda to go alone in Asia-Pecific region

Honda Motors', Japan based leading car maker eyeing to boost its presence in the Asia on its own, neglecting the popular trend of tie-ups and mergers. On the other hand major automakers entering into tie-ups with their rivals to capitalize on the vast opportunity exists here. Joint Venture like Nissan Renault, Volkswagen-Suzuki are working hard on making fuel efficient low cost cars in the region.

Mr Fumihiko Ike, head of Honda's Asia Oceania operations, said that as the past experience of partnerships including a deal with General Motors for supplying engine was not good, so company is not looking for any partnership in the region right now. Pursuing bigger volumes is certainly one way of lowering costs, Mr Ike told to reporters. But in reality making cars isn't that simple. It's very difficult for two companies to work together towards a common goal. On paper you might end up with the volumes, but in other ways you get huge inefficiencies, he added.

Where the car makers including Nissan, Renault and Bajaj have came into a joint venture to manufacture an ultra low cost car in India by year 2012, Honda is going alone to manufacture its small car in India which was showcased at Delhi auto expo in January this year. The new small car from Honda is expected to be launched with a price tag of Rs 500,000. After the launch the model will compete with popular small hatchbacks including Maruti Wagon R, Maruti Swift, Maruti Ritz, Hyundai i20, Hyundai i10, Ford Figo, Volkswagen Polo, Nissan Micra and Fiat Punto.

Now as company is moving alone, it is expected that it will manage to produce a small volume against a mass volume of company's like Nissan and Hyundai which are already producing more then 1 million units per year. Hyundai is the number one seller in the Asia-Pacific region with selling more then 1.37 million vehicles last year, followed by Toyota and Suzuki with sames of 1 million vehicles car each. While Honda Motors managed to get forth spot with selling 348,000 cars.