Honda Prepared to Increase Production to Meet Demand image

Honda is ready to increase production capacity in the US, Canada or Mexico, depending on the vehicle segment which will increase the most in the next five years.

According to Tetsuo Iwamura, CEO of American Honda, by 2016 the automaker’s sales in North America will overpass 2 million units, from 1.7 million this year. Honda also plans to increase global sales by 50% in the following four years to 6 million units, with India, Brazil and China accounting for most part of the growth.

The company hopes its North American sales to rise 18% and the overall market’s increasing tide is expected to lift the automaker’s sales to reach its goal. IHS Automotive and LMC Automotive expect alight-vehicle sales in the region to go up 15% this year. The automaker predicts sales will go up in all segments, but especially in small cars, thanks to the new plant it is building in Mexico, which will produce 200,000 small cars annually. The facility is expected to be opened in 2014.

“If the market allows us, of course, we won’t hesitate to expand capacity,” Iwamura said.

The plant in Mexico will manufacture only small cars, so if demand for the mid-sized models or other large models will increase, the company is prepared to increase production capacity at its Canadian or US plants.