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Honda Motors announced today that they will be increasing production capacity of motorcycles in Vietnam from 2M units to 2.5M units. The additional capacity will come from a new 500,000 unit production facility.
The line offered in Vietnam has many offering with Honda's PGM-FI.
Vietnam has the fourth largest market, behind China, India and Indonesia . Currently Honda controls two thirds of the total sales in Vietnam.
Honda Future X-FI
http://dantri.vcmedia.vn/Uploaded/20...X-280110-4.jpg
Comparing Vietnam's size to China and India, Vietnam is number one for bike usage. The whole country moves on two wheels..
I was there three months ago, here's what those 2Million bikes look like on the streets of Ho Chi Mingh City (Saigon)..
http://hotimg23.fotki.com/a/123_86/0_66/P1060812.jpg
http://hotimg23.fotki.com/a/123_86/0_66/P1060813.jpg
http://hotimg23.fotki.com/a/123_86/0_66/P1060814.jpg
http://hotimg23.fotki.com/a/123_86/0_66/P1060815.jpg
http://hotimg23.fotki.com/a/123_86/0_66/P1060816.jpg
http://hotimg23.fotki.com/a/123_86/0_66/P1060817.jpg
Some crazy riding.. They come at you from everywhere. It's a bit overwhelming riding in such an environment. I spent almost 3 hours riding as a pillion with a motorcycle taxi, because I didn't have a passport to rent my own bike at the time. at 5:00 I got my own bike. It was a bit scary, but I got used to it quick enough. But just thinking if one bike in that swarm takes a tumble... and you're in the middle of "bike pile-on" ... lol .. just thinking of it.. I rode from 5 pm till 8 am .. taking breaks for coffee, beer, sandwiches ... in total .. 104 km in Saigon. After that it feels like second nature riding with so much going around you. If you think streets in China were crowded .. think again.
Wow - those pics are cool. Probably not many large displacement bikes?
I was surprised to read about the 2/3 market share that Honda has. Not sure why that would be. I mean, Honda makes a really great bike, but so too does Yamaha, Suzuki, Kawasaki, etc.
The people don't wear full gear too.:rolleyes1:
Yes, Vietnam seems to ride by a different standard altogether. I've read that motorcycles comprise 90% of all vehicular traffic there. Check out this image:
http://uploads.veryvietnam.com/2011/01/xemayvietnam.jpg
cheers
Photo is real, I can confirm that. But I have yet to see Bankok, similar?
What was very surprising in 'Nam is that I didn't see even one Chinese made vehicle. No cars, motorcycles, nothing made in China. Only Japanese and European brands, and maybe some of those tiny Chevy's. I was told that Vietnam imports some construction vehicles though.
About big bore bikes, I found this shop while cruising around Saigon..
http://hotimg23.fotki.com/a/123_86/3_41/P1060833.jpg
http://hotimg23.fotki.com/a/123_86/3_41/P1060834.jpg
http://hotimg23.fotki.com/a/123_86/3_41/P1060835.jpg
http://hotimg23.fotki.com/a/123_86/3_41/P1060836.jpg
Why is the first thing I notice about this picture that more than 90% of them have helmets?Quote:
Originally Posted by euphonius
Because you look out of the window and see the reverse ratio...Quote:
Originally Posted by Nuhaus
WTF can be going on in that photo? Mass protest or mass traffic jam? I'd kill myself if I had to put up with that traffic. And where the f**k is Waldo?
Don't need no stinking helmet in that mess. You couldn't fall down if you wanted to.
The 65-66% claim of the total market sales in Vietnam would represents a total annual sale rate of 4.32M for motorcycle in Vietnam.
All thing being equal then China, India and Indonesia would have total sales ranking respectively above that number.
Just for a perspective, Yin Xiang claims production capacity of 1.2M annually and also that they were primarily exporting until 2008. However they exported only 360,000 units in 2009 and began selling domestically 5000 units. If the number is monthly then they are producing 480,000 unit annually and well under half of its total production capacity.
I could have used any Chinese manufacturer just for an example how huge the capacity to manufacture is in China.
If total capacity does not come close to total demand then it becomes very inefficient, it can and usually does bleed capital, it has to reduce operating cost and typically lays off workers and in many cases sells off assets, that is called downsizing.
Many of these manufactures are operating as an OEM basically not seen as in behind the scenes, the small fragmented distribution systems fail and they loose out in a big way. Push systems do not endure they eventually collapse. The market is collections of consumers and they have to be cultivated and then feed products that meet their demand.
Honda is winning in Vietnam because they are manufacturing a very good product that is produced domestically and in that cycles capital into the domestic economy, it becomes favored or even adored.
Conversely nobody knows who Yin Xiang is they could disappear and nobody would notice them gone.
However they could have been Hyosung in china, they could have developed and produced those models to the new standard for C3 and be selling them in china today….but they are not are they.
Oh well… would a could a should a?
But then again Yin Xiang did land a big connection with Kohler and should in that get access to small engine EFI systems.
Its is not that EFI will save the planet, but if universally implemented it could reduce the collective consumption. That being you will still be generating C02 but just at a slower rate and with less of the hydrocarbons by products.
Another reason Vietnam embraces Honda, the little bikes are getting EFI and they use less fuel and pollute less, those people care about the air they breath because they are choking on the fumes they see everyday!
Kohler supplies engines to CUB Cadet and Artic Cat…
They also make a 65hp four cylinder diesel engine, makes me think about a micro pickup truck for commercial use?
Kohler has engineers that can develop any engine design, I am just saying.
Certain companies in China turn me on and others do not, I have had my eye on Yin Xiang for some time.
I would like to see off road vehicles sold in the USA under the JEEP name, not just full sized autos, but a full line of in the dirt and on the road vehicles. We do know that the Italian have bought a majority share in Chrysler.
I could see small motorcycles and scooters offered under the FIAT brand along with small eclectic cars, not just the 500 but also a spider roadster. 1.4 liter engines with EFI and multi gear transmission, that being 6 plus. The next generation Chrysler 300 will be equipped with an eight speed…FYI.
What I am talking about is international global manufacturing, and major branding.
I would like to develop a full line of fun economical vehicles under the FIAT name.
I would like to develop a full line of sport utility vehicles under the Jeep brand.
The future may be online ordering and also disbursed service centers, they would have showrooms but ordering would come out of central warehouses and orders placed online.
Yin Xiang has a 200cc DOHC four-valve rated at 20hp, that type of engine with EFI and a six speed potentially fits the commuter bike ideal perfectly. Fun and stylish, and above all else affordable.
A full line of ATV and UTV as well as dirt bikes could be offered through Jeep, along with custom trailers to marry to small SUV’s.
Chrysler used to make outboard engines, small water crafts could be added to the mix, then a Jeep store becomes an outdoor recreational vehicle store.
I would suggest that the Chinese quell and direct their production capacity, link to knowledge and share in development. But it has to be smart and in that distributed value across all markets.
It all require finite documentation, every little detail marching in rows, digital rows of data and related values and metrics. It is about being highly organized and realizing the importance of being organized at every level and how it all interrelates to form the operation. It is about the processes and the procedures used. It is very much about the use of technology and data management.