Honda to launch new cars in China to compete with GM

Honda Motor Company has extensive plans where sales in China are concerned. Honda is present in China via two joint ventures. Over the next two years, they plan to have a total of 20 new models on offer, which will help them achieve more sales. Apart from launching new cars, Honda will also keep in mind to keep the cost down, by sourcing more parts from China. Their rival, GM in comparison, offers 40 models in China.

Honda to launch new cars in China to compete with GMWith Chinese auto market being biggest in the world, sales are expected to increase substantially over the next few years. This despite current economic scenario and State Council’s regulations where curbs on luxurious spending by Government officials are concerned.

Increase in sales is expected to receive a major boost from small towns of China, where a growing demand has been noted. Even today, sales from small towns account for big numbers, and it is this demand that will make sure Chinese auto industry continues to post double digit growth in 2014.

In 2013, China beat all other countries where car sales were concerned, selling more than 20 million vehicles while sales in the US touched 15.6 million vehicles in the same year. These extensive sales resulted in a 14% growth as compared to sales in 2012. Taking the current year into account, automakers in China sold 1.71 million passenger vehicles in March 2014, an increase of 7.9% as compared to sales in the same period in the previous year.

The recent Auto China 2014 saw Honda bring in two new concept cars. Honda Spirior Concept and B Sedan Concept were showcased. Spirior concept will enter production later this year and will be produced by Honda’s joint venture with Chinese automakers Dongfeng. This car is exclusive for China with no plans on selling this car in other markets at least as on date. Concept B will feature themes developed using principles from the automakers Exciting H Design language with both models going a long way in helping Honda achieve its targets.

via Reuters