Asianbiz

Wednesday, June 25, 2008

Honda Motor Company observes increased sales amidst economic slowdown and rising fuel price

In the middle of sub-prime economic crisis and high fuel price in the USA, Japan’s second largest auto maker Honda Motor Company Limited (TYO: 7267) is observing a consistent rise in its car sales. This is truly a big achievement for the company. In an email to the analysts, the company said that the company’s US sales in the first 20 days of June 2008 was higher than last year. Thanks to its latest models of fuel efficient small vehicles.

The email said that Honda’s total sales in the USA rose by 16% in the first 20 days of June. However, Chris Martin, Honda spokesperson could not confirm the email. Honda is among the top five automakers that has observed increased sales in the USA this year. The $4 per gallon gasoline has forced consumers to buy fuel efficient vehicles. Like other USA automakers, Honda does not depend heavily on large vehicle sales. Truck sales makes up less than 40% of its total vehicle sales. The Sydney Morning Herald reports:

''Honda may raise its profit forecast at the half-year point,'' said Takashi Aoki, who helps manage about 130 billion yen at Mizuho Asset Management. ''It may also increase production capacity for the Civic and Accord.''

Through May, Honda's US sales gained 4.8%, compared with an industry decline of 8.4%, according to Autodata. Last month the Civic was the top-selling vehicle in the US, besting Toyota's Corolla and Camry sedans.

The email further says that Honda civic, Honda Accord and Honda Fit are the top selling models of the company. However, sales of the light truck models are down due to fuel crisis and economic slowdown. The car sales went up by 37%.

According to Detroit based Honda spokesman, Chuck Schifsky, the demand of Honda Civic is so high that the company is facing a very tough time to meet the demands.

Hyundai Elantra SE scores “Excellent” in Consumer Reports’ road test

Hyundai Elantra SE has been chosen as the best car by the July issue of the famous US magazine for consumers, Consumer Reports. The Hyundai Elantra SE scored “Excellent” in the overall road test score by the Consumer Reports. Along with Hyundai Elantra SE, three other cars: Toyota Corolla, Subaru Impreza and Ford Focus achieved “very good” ratings. The test was conducted over a group of Sedans.

The redesigned Toyota Corolla achieved 32 mpg in the CR fuel economy test. This is the best gas mileage observed by CR in a conventional gasoline powered car with automatic transmission. The smaller Honda Fit scored similar gas mileage followed by Toyota Yaris, which achieved 33 mpg. infozine.com reports

Two Chevrolets were also tested as part of this group, the Cobalt and Aveo. Both ranked near the bottom of the pack. Among compact sedans, the Cobalt ranks 17th out of 19 vehicles tested. Among subcompacts, the Aveo ranks last among the 12 vehicles tested.

Prices for the six cars in CR's tests range from $16,205 for the subcompact Aveo LT to $19,106 for the Impreza 2.5i which is all wheel drive. Even with prices under $20,000, the best of today's small cars provide many convenience features, comfortable interiors, good refinement, and improved fuel economy.

You will get the full report in the July issue of Consumer Reports magazine that has gone on sale on June 3. The magazine conducted the test over 31 small sedans and 21 top used cars.

The Hyundai Elantra SE also took the top position in Consumer Report’s April issue. The car outperformed Honda Civic EX by one point. Compared to Honda Civic EX’s manual transmission, Hyundai Elantra SE comes with standard electronic stability control. This is a great safety feature of the car.

Related articles:
infozine.com