Daily Management Review

Honda’s Sales Leave Behind The Rest Of The Automakers In 2016


01/12/2017


Tax incentive prove to be fruitful for Honda, while analysts warn that rolling back of same scheme will lead to a sharp drop of sales.



In an attempt to “make the most of a tax incentive”, customers in China “rushed” to purchase cars, whereby boosting the sales of the “global automakers” in the year of 2016. However, Honda Motor Co. Ltd. seems to be ahead of Ford and Toyota in this race, reports Jake Spring from Beijing.
 
Traditionally, Toyota has been ahead of Honda in the Chinese market, being the “largest auto market” of the market. However, last year the tables seemed to have turned as Honda went ahead with a twenty four percent of growth in “year-on-year” sales, whereby selling “1.25 million vehicles”. The said growth has been particularly boosted by a “steady stream of fresh models” especially falling under the “hot sport-utility vehicle segment”.
 
On the other hand, reports from Toyota showed an increment of “8.2 percent rise” concerning the sales for the year of 2016, while for the current year, the company’s expectations are to “at least” sell “1.2 million vehicles”.
 
Moreover, Ford informed that its sales in China rose to “11.9 percent”, accounting for “1.24 million vehicles” in the year of 2016, while a calculation conducted by Reuters demonstrated  that these above mentioned figure does not take into account the sale of Ford’s “premium Lincoln brand”.
 
Due to the above mentioned three companies, Nissan continued see a lag in its sales in China, while the sales figure of Nissan rose by “8.4 percent to 1.35 million vehicles” in China during the year of 2016. According to Reuter’s report:
“Earlier this week, General Motors Co (GM.N) and its joint venture partners reported sales of 3.87 million vehicles in China for 2016, up 7.1 percent, cementing the country's position as the U.S. automaker's top market for a fifth consecutive year”.
 
Given to the step taken by China to “cut taxes on small-engine cars”, last year the Asian country’s demand for cars just got a lift. Nevertheless, the “tax incentive” concerning the “1.6 liters or smaller” engine cars, slashing the price to half, is “being rolled back” now.  As a result, the tax quotient will go up by “7.5 percent this year”, while in the coming year of 2018, it will return to ten percent. As per analysts, the said move will cause a “steep drop in sales growth”.
 
 
 
 
References:
http://www.reuters.com/







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