Two of the largest Japanese automakers, Honda Motor Co and Toyota Motor Corp. are offering unusual high levels of incentives in a try to increase sales, USA Today reports.
In fact, according to TrueCar.com, Honda reached its highest incentive spending level ever recorded. The Japanese automaker is expected to spend $2,380 per unit on incentives this month, marking a 1.8-percent increase from last month and a 17.7-percent climb year-over-year.
On the same time, during October, the 2011 Toyota Prius is available with a 0% interest rate financing incentive for 36 months. The 2011 Toyota Corolla is on sale with a 0% car loan incentive for 36 months, a 0.9% financing incentive for 48 months, or a 1.9% loan incentive for 60 months.
The largest Japanese carmaker is expected to sell 135,064 units this month, computing into an 11.2 percent increase from September.
As expected, Toyota and Honda are offering these incentives to make up for what it lost due to the Japan tsunami disruptions.
“We need to do what we can do to make that up,” says spokesman Chris Martin. “It’s like trying to refill that bathtub.”
However, both automakers are facing new problems in Thailand, where all the factories are offline. Moreover, Honda has halted production at its Malaysian plant due to disruption to its supply chain caused by devastating floods in neighbouring Thailand.
The company said in the statement it was looking into sourcing parts from other countries until supplies in Thailand return to normal.
Toyota’s three factories were undamaged, but the broken supply chain began affecting its production in Japan and other Southeast Asian factories this week.