MARKET The automobile industry has undergone rapid change in the last two decades. Notably, it is consumer preferences, as well as environmental concerns, that are shaping the way the industry continues to evolve. The four most popular Honda car models, the City, Civic, Accord and CR-V, account for 70% of the company’s 2012 revenue. Assembled at the Malacca plant in Malaysia, the stylish, sporty Civic, and the urban premium CR-V SUV, are market leaders in their respective non-national industry segments. Achieving 45% of overall sales in 2012, the City had an impressive year alongside the surging, market-leading Honda Hybrid family, which earned 25% of overall sales. True to the promise it made at the beginning of 2012, Honda Malaysia has continued to increase its market share and gain momentum. Surmounting its previous challenges, the company sold a total of 34,947 units in 2012. More than 24,000 of those vehicles were sold between July and December, which translates to a 7.7% market share during the second half of the year. An all-time record 5,045 units were sold in July 2012, and the company closed the year with almost 4,800 units sold in December 2012.
ACHIEVEMENTS In addition to the honour now bestowed, as a Superbrands recipient, Honda Malaysia was awarded the Reader’s Digest Trusted Brands 2010 Gold Award for Automobiles; Best Booth Award at Kuala Lumpur International Motor Show 2010, Asian Auto; and the VCA Auto Industry Awards
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2010. Honda Freed won the Silver Award as the Best Value for Money, MPV category, at the Putra Brand Awards 2010. The brand also took the number one position in the Customer Service Index Study conducted by Malaysia J.D. Power, while the Honda City was named the best entry level, mid-sized car in the J.D. Power Asia Pacific 2010 Malaysia Initial Quality Study. The following year, Honda Malaysia received the Putra Brand Awards 2011, Gold Award. Honda City took first place for the Family Cars category, while Honda Freed took pole position for the Compact MPV Category. Honda Insight came in second, and the Civic Hybrid was awarded third in the Family Hybrids Category, while Honda Stream RSZ was recognised in the Compact MPV Category at the Asian Auto Fuel Efficiency Awards. In view of its accomplishments, the benchmark for Honda Malaysia has been set high for 2013. The company anticipates it will outperform sales targets, and will continue to earn the acknowledgment of consumers and industry experts. Building on its many awards, Honda Malaysia is well positioned to surpass its performance from all previous years. To that end, Honda City was recently ranked at the top of the
ASEAN New Car Assessment Programme (ASEAN NCAP). The favourite family sedan earned 5-stars in Adult Occupant Protection, and an 81% score in Child Occupant Protection, the highest rating amongst the eight vehicles tested. In addition, the Honda manufacturing facility in Malacca - the Pagoh Plant - received ISO 14001 and ISO 9001 accreditations for its Environment Management and Quality Control systems.
HISTORY Honda was founded and named after Mr. Soichiro Honda. As a teenager, Soichiro apprenticed at a car repair shop in Tokyo, where he honed his talents in technical innovation before embarking on numerous projects related to engineering and automobiles. After World War II, Mr. Honda started a business that focused on fitting war surplus engines on bicycles, as well as on the design and manufacture of products that directly appealed to him. Mr. Takeo Fujisawa joined on the commercial side, and helped lay the foundation for what was to become a major international conglomerate. Honda made its foray into Malaysia in the 1960s, appointing Kah Motors Sdn Bhd as its distributor. In 2000, Honda Motor Co. Ltd. of Japan partnered with DRB-HICOM Berhad and Oriental Holdings Berhad to form Honda Malaysia Sdn Bhd.
In 2003, the company set up a manufacturing plant in Malacca. Spread over 80 acres, the Pegoh Plant has a total built area of 13 acres. It rolled out its first car, a CR-V, in January 2003, and by the end of 2012, Honda Malaysia had sold over 300,000 cars.
PRODUCT Honda defines itself as a forward-looking mobility company that develops a wide range of products including motorcycles; automobiles; power products such as lawnmowers and motorboats; aircraft engines (HondaJet); humanoid robots (ASIMO); fuel cell vehicles; and solar films. It prides itself on developing cars that are more than just a means of transportation. Products are designed to provide the pleasure of ownership and driving. Advanced futuristic innovations and performance are aspects that Honda emphasises to differentiate itself. All its cars feature the i-VTEC engine, which is wellknown for creating the perfect balance between high performance and fuel efficiency – two qualities that are difficult to marry in a single engine. Honda Malaysia has also managed to maintain a leadership role in hybrid sales by offering the widest range of hybrid vehicles. It almost doubled its 2011 unit sales of 4,598 when 8,712 units were sold in 2012. Besides the four main models assembled locally, Honda Malaysia was the fourth country, after Japan, United States, and Thailand, to introduce the CKD Hybrid Jazz, making it the first Malaysian manufacturer to assemble a hybrid locally. It also markets CBU models from Japan, Thailand and Indonesia, including the Jazz petrol, Civic Hybrid, CR-Z, Insight, Freed, and Stream RSZ, to cater to the diverse needs of its clientele.
RECENT DEVELOPMENTS At the beginning of 2009, Honda Malaysia spent close to four months upgrading its Pegoh Plant manufacturing facilities and installing advanced machinery. That year it also achieved the milestone of shipping its 2,000,000th set of Constant Velocity Joints (CVJ). It had begun producing CVJs in 2002, an integral mechanical device that transfers power from the engine to the wheels. As the biggest exporter in the region,
Honda’s CVJs went to the United Kingdom, Turkey, Pakistan, India, Thailand, Vietnam, the Philippines, and Indonesia. In 2010, the Pegoh Plant facilities were upgraded again, and the production capacity increased from 35,000 to over 40,000 cars per annum. After the difficult double disaster - tsunami in Japan and flood in Thailand - that disrupted parts supply and production in 2011, Honda Malaysia resumed production in 2012 and continued to strengthen operations. A ground breaking ceremony marked the construction of a new No.2 Line at the factory in Melaka that doubled production capacity to 100,000 cars annually. Recovery has also been enhanced with the launch of 10 new vehicle models.
PROMOTION Honda pursues quality-based sales over volume, and focuses on building strong brand awareness and market presence, rather than on aggressive sales campaigns. In line with Honda’s worldwide mission to provide high quality products and services at reasonable prices, Honda Malaysia delivers value by offering exciting additions to the product line-up, with high standards of service that exceed expectations. One such example is the Nov 2012 Jazz CKD Hybrid model change and price reduction. The vehicle still offers advanced features, and a styled exterior, as well as refined driving comfort similar to the CBU model. In July 2012, a long awaited model change transformed the Civic into an Advanced Smart Sedan that further strengthens its market leadership. Appealing predominantly to professional urbanites, it comes fully loaded with practicalities, performance and style. To provide an optimal standard of sales and after-sales service, Honda Malaysia offers the 3S – Sales, Service and Spare Parts facilities at 56 of its 59 dealerships. The 3S concept is a constituent of Honda Malaysia’s policy for prioritising customer satisfaction while creating an enjoyable experience. The premise is that a life-long relationship is created when a vehicle is purchased, and that it is crucial to nurture that on-going relationship with high quality aftersales services. Honda Malaysia’s long term goal is to achieve 90 3S dealers by 2015.
As for motorsports, the Honda Malaysia Racing Team has made a comeback. Utilizing the Jazz as the race machine - for the first time - the local associates team participated in the S1000 race.
BRAND VALUES Honda’s slogan, ‘The Power of Dreams’, expresses the ambition to realise and inspire extraordinary dreams through innovation. True to its Japanese roots, Honda is committed to achieving total customer satisfaction by ensuring the quality of products in both form and substance. Beneath the appealing aesthetic lies advanced technology that powers every product. Honda plays an active role in giving back to the community in every one of over 100 countries where it operates. Since the 1970s, it has been cognisant of, and committed to, environmental issues, and its research and technologies have been translated into practical, environmentally friendly products.
www.honda.com.my THINGS YOU DIDN’T KNOW ABOUT HONDA t *O EFTQJUFIBWJOHMFTTUIBOZFBST of automobile production experience, Honda became the first auto company to comply with the United States’ Clean Air Act. t )POEBTIVNBOPJESPCPU "4*.0 XIJDI stands for ‘Advanced Step in Innovative Mobility’, is the world’s first two-legged robot capable of dynamic walking. It is also able to recognise human gestures and postures; ambient surroundings; and it has the ability to take independent action based on self-acquired information. t *O )POEB+FU TVDDFTTGVMMZ NBEF its first test flight. Boasting far better fuel efficiency and higher cruise speed than conventional light business jets, delivery of HondaJets is expected to commence in 2014. t 4JODF JUT FTUBCMJTINFOU JO )POEB has served close to 400 million customers worldwide.
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