Honda Motor Company’s CEO, Takahiro Hachigo, has stated that the Japanese automaker has witnessed a small decline in its car sales this year in China compared to the numbers from 2014.
Despite an uneasy economy and financial markets in the country, Hachigo is still predicting an overall growth for Honda’s entire fiscal year versus the past year. The car manufacturer’s CEO declared for Reuters that Honda has registered a decline in its Shanghai stocks and that its sales have registered a slight decline recently. However, the chief from Honda, who was head of the auto brand’s Chinese subsidiary, mentioned that younger buyers are yet a source for an increase in car sales in the world’s largest auto market. He then added that this will lead to bigger sales over the fiscal year up to March 2016 in comparison to the previous 12 months. Hachigo believes that the 2015 car sales in China will surpass those from 2014 and that the Chinese car market can still grow from its current status.
The economy situation in China has been through a tough break as Chinese stocks went down as much as 30% since the middle of June, leading to the Japanese shares reaching a three-month series of lows.
Honda has recently expanded a recall in connection to the potentially deadly airbags produced and distributed by Takata Corp. and has called back 1.63 million cars in Japan. Honda is still investigating the issues with Takata but it is still keeping it as a business partner in terms of supplies.
By Gabriela Florea