After working with Honda ventures around the globe - in the US, Europe and the Asia and Oceania region, Takedagawa was appointed to his current post at Honda Siel Cars India in April, 2005.
Takedagawa, who was recently in Kathmandu, talked with Tapas Barsimha Thapa of myrepublica on the impact of the global slowdown, recent signs of recovery and Honda´s position and plans in South Asia. Excerpts:
What is your assessment of the Honda operations in Nepal?
Shyakar Company (the sole-authorized distributor for Honda four-wheelers and Honda and Hero Honda two-wheelers for Nepal) has been associated with Honda since 1968. I visited the motorcycles showrooms at Syakar´s headquarter. It was a well-setup clean showroom and they also have a very organized workshop. They not only care about just selling the vehicle but also about the customer care and overall maintenance. I also visited the Honda car showroom which is very beautiful right next to the Ring Road and I think it is a landmark showroom. I was impressed. Also on my itinerary was Syakar´s soon to be opened safety school for motorcycle riders. Safety riding is one of Honda´s core principles.
Record high oil prices, the global financial crisis and recession in major car buying countries has hit the vehicle industry hard and sent some biggies to restructuring and Chapter 11. How has Honda been affected?
Since the Lehman Brothers´ shock in September last year, the entire market was damaged, particularly the US market which came from 17 million units a year to only 10 million. The Japan market also shrunk as did the European market. But the good part is that the Chinese market, which is growing dramatically with 13 million cars, as well as the Brazilian and the South Western Asian market have helped our global business. Plus our second pillar - the motorcycle market - has grown steadily in the Asian market. Sales loss in our strong markets has been balanced by these emerging markets. That is why this fiscal year we expect to show some positive figures, not by much but still positive.
How have the last two years been in the South Asian region?
Since 2003, this region has grown a lot. It is the most emerging market in the world. The Sensex dropped sharply in January 2008 caused by US sub-prime mortgage issues. The global economy was hit only a year after that. The year 2008 was a very tough year. During this time, the region, including India and Pakistan and even Nepal, witnessed slowdown. But the Indian and other governments then released stimulus in their economies. The market then began to turn around from spring and in October this year, the motorcycle market witnessed a growth of 17 percent.
What is Honda´s position in Nepal?
Nepal as a market for motorcycles is growing. Honda and Hero Honda hold 60 percent market share in the motorcycle market. In fact, we are seeing a very short supply here. It is hard for our production to keep up with the demand here. In 2010 we hope to grow by 40 to 50 percent. The Honda Jazz, which was launched here three months ago, has also been received well. It is quite recognized here for its body, space and sporty looks plus safety standards.
Keeping in mind volatile price of oil and the current hot topic of climate change, what are your future plans for the region, regarding Hybrid cars?
Honda has no immediate plans to expand its hybrid manufacturing units into the region. But what we are doing here is investing in improving the combustion system and engine to increase fuel efficiency and bring down emissions. Honda is all about cleaner emission and safety.
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