3 June, 2007
BY OUR AUTOMOBILE CORRESPONDENT
Japanese major Honda Motor Co plans
to export 70 per cent more China-made
cars to Europe this year. Currently,
Honda sells the China-made Jazz cars
in 10 European countries, including
Germany, Italy, the UK and France. The
Jazz cars will also be marketed in
Czech Republic and Poland this July.
The company is apparently in a bid to
take advantage of low costs in the
world's No 3 vehicle producing
country, a report said. The report
added that Honda Motor Co will ship as
many as 42,000 Jazz subcompacts
assembled at a joint venture in
Guangzhou to Europe this year. This
will be up from 24,600 units in year
2006.
Honda became the only foreign carmaker
to have a totally export-oriented car
base in China when it formed the
50,000-unit venture in 2003 with $82
million of registered capital. The
company holds a 65 percent stake in
the venture.
Compared to Japan, the company said it
enjoys low costs in China. The joint
venture uses the spare parts supply
networks of Honda's other car venture
with Guangzhou Automobile, which
targets the Chinese market, and an
engine plant with Dongfeng. Sixty
percent of spare parts in the
1.2-and-1.4-liter Jazz cars are
purchased in China, the report said.
Europe is seen as one of the world's
most demanding car markets and the
Jazz is well received there proving
that China-made cars can be high
quality.
Many an indigenous carmaker in China
are boosting exports of late. Last
year, Brilliance China Auto, in
partnership of BMW, started selling
its own-brand cars in Europe.
According to statistics, China's
vehicle exports surged by 59 percent
to almost 100,000 units in the first
quarter of this year, including 25,000
cars.
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