Astra Honda Targets 51% Motorcycle Market Share

PT Astra Honda Motor, a subsidiary of PT Astra International Tbk (ASII), is targeting 51 percent market share of motorcycles in 2011. The target is projected to reach 8.3 million units worth of sales. In 2010, Astra Honda recorded a 46 percent market share of motorcycles from 7.37 million units total sales.

Sigit Kumala, Senior General Manager of Sales Division at Astra Honda, said that to support the 2011’s target market, Astra Honda will increase production capacity and reorganize the sales network.

Until July 2011, Astra Honda achieved sales of 2.46 million units, or 51.4 percent out of the national total motorcycle sales of 4.79 million units.

Honda sales were dominated by automatic scooters, through products such as the Honda Beat, Vario Series, Scoopy, Spacy Helm-In and the premium model of Honda PCX. Honda Beat sold 562,341 units, Honda Vario Series sold 493,006 units, Honda PCX sold 1,111 units, Honda Scoopy sold 136,239 units and the Honda Spacy Helm-In sold 72,669 units. Total sales of automatic scooters reached 1.4 million units with a market share of 53.4 percent.

As of July 2011, Honda scooters’ sales growth reached 55 percent, compared to July 2011 which only sold 815 thousand units. This growth was well above the national scooters’ sales growth of only 9.5 percent.

Astra Honda has increased its scooters production in the first semester from 100 thousand units to 180 thousand units. For the second semester, the company also plans to increase production.

Along with the operation of a new factory in August and the optimization of existing factories, Astra Honda revised the sales target in 2011 to 4.3 million units from the previous 4 million units. Johannes Loman, Executive Vice President Director of Astra Honda, said that the operation of the Cikarang factory is scheduled for September, due to the completion of the development process.

The Cikarang factory in West Java requires an investment of US$ 80 million. The factory will be specializing in manufacturing automatic scooters with production capacity of 500 thousand units per year. The factory will increase Honda's production capacity to 4 million units per year from the previous 3.5 million units.

Underbone Segment

In the underbone segment, Honda achieved sales of 1.05 million units during the period of January to July 2011, from the total motorcycle market of 1.9 million units. Honda Revo series was the biggest contributor sales of 537,950 units. The remaining sales were contributed by Supra X 125 with 397,413 units and Honda Blade with 116,061 units.

In the sports segment, Astra Honda reached 63.5 percent increase during January-July 2011, with sales of 145,797 units. Honda MegaPro contributed 112,003 units of sales, Honda Tiger accounted for 21,138 units, and Honda CSI sold 7,842 unit.

Honda premium motor sports, the Honda CBR series, also recorded total sales of 4,814 units, while Honda CBR250R sold 4,647 units, and Honda CBR150R sold 167 units.