Honda US Calls For Tax Breaks Companys Performance In Asia Continuously Grows
In order to encourage greater consumer investment in the technology Honda USA VicePresident John Mendel has called for taxcredit schemes aimed at extending hybrid car drivers to buyers of fuel cellpowered cars.
He said in an interview early this week that providing further tax breaks for hybrid car buyers would not be the right move as hybrid serve as the bridge technology to something else. Instead he further argued the benefits should be provided to fuel cell car drivers as fuel cell technology continues to “push the envelope” in the development of energysaving technology and should therefore be encouraged.
Mendel’s comments follow Toyota’s appeal to the US government to extend the current taxcredit scheme for hybrid drivers.
Meanwhile Asian stocks had their first back toback advance this year after U.S. retail sales was climbed by the most in five months and machinery orders in Japan rose. Honda Motor Co. together with Samsung Electronics Co. led gains by exporters.
Another proof of Honda’s rising in Asia is its plan to build its second plant in India the continent’s fourthbiggest economy.
N.K. Goila the vice president of Honda Siel Cars India the country’s company unit said last January 9 that Honda may spend 20 billion rupees 450 million to set up the second car factory in Rajasthan.
Honda has decided to build the second plant because the existing one in Uttar Pradesh is not large enough to accommodate new facilities necessary to keep pace with the ongoing demand growth.
According to Honda spokeswoman Yasuko Matsuura the Tokyobased manufacturer of cars and motorcycles will locate the plant in the northwestern state of Rajasthan northwestern India. She continued that it has yet to decide on the exact site of the new plant but it will be selected in coming months and construction is to begin later this year. That plant will begin operating in the first half of 2009 with an initial capacity of 50000 cars a year and Honda plans to increase it gradually. The company plans to find a site large enough to produce 200000 cars annually.
Company officials say they plan to invite affiliated parts vendors to set up near the new factory with a view to boosting the locally procured content of the vehicles assembled there.
Honda’s first plant that assembles Accord and Civic sedans in India has the production capacity of 50000 cars. The company has announced to increase the production capacity to reach 100000 cars by the end of 2007 and to even increase it to 150000 vehicles by 2010.
Volkswagen AG General Motors Corp. and other automakers are starting up production or building more factories in India Asia’s fourthbiggest automobile market where demand for vehicles is growing with an expanding economy. Automakers last year announced a combined 5 billion of investments in new factories in India by 2012.
India’s economy Asia’s fourthlargest grew 9.1 percent in the halfyear ended Sept. 30 the fastest semiannual pace in 15 years boosting demand for cars. Northern and eastern India account for 45 percent of the company’s sales the statement said.
India’s car market may triple to 3 million units annually by 2015 according to the Society of Indian Automobile Manufacturers. That has attracted manufacturers including Suzuki Motor Corp. Hyundai Motor Co. and DaimlerChrysler AG. Last year Renault SA France’s secondlargest carmaker said it will open a factory in India along with Mahindra Mahindra. Renault’s affiliate Nissan Motor Co. may also join.
Honda is also maker of quality Honda tie rods.
About the writer: James Russel grew up in Los Angeles and is 35 years old. He works as a marketing analyst for a supplier of automotive parts in the United States. On his spare time he loves to spruce up his vehicle.
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