Honda’s global reach helps OEM hit 500 million-unit milestone
In May, Honda reached a cumulative global motorcycle production of 500 million units, and the company credits its contributions to worldwide communities and building mutual trust as important reasons it hit this production milestone.
Honda began full-scale motorcycle production in 1949, just one year after its founding in 1948. Honda’s first motorcycle was the Dream D-Type. In 1963, Honda established its first overseas motorcycle manufacturing plant in Belgium and subsequently set up facilities all over the world, with production rooted in the local markets.
Honda says the key to its massive motorcycle production over the decades is its philosophy of building products close to the customer, and tailoring to each specific market it manufacturers in.
“Of course, it is essential to produce products tailored to local needs and preferences,” says Masanori Shimazoe, general manager of Honda’s Kumamoto factory in Japan, which serves as the global hub supporting the company’s motorcycle and power products production. “However, to be chosen by the local people, it is also necessary to thoroughly understand that country and cultivate a sense of attachment to it.”
Shimazoe emphasized that the importance of its build-close-to-the-customer philosophy is two-fold. For one, it reduces the lead time from production to delivery from the production country. Secondly, it allows the company to be accepted by the local community.
“Selling products locally made is not enough to gain trust. It is only by rooting ourselves in the local community and working together that we can gain acceptance,” Shimazoe adds.
Honda says in this current market, high-quality products that better suit customer preferences need to be developed, and service and brand strength are vital. Moreover, rapid response through local production becomes a key source of competitiveness.
Honda adds that its strategy is leveraging profits from mature markets to make proactive investments in potential markets, balancing its global business portfolio while aiming for long-term growth.
