Honda is moving some of its production capacity outside of Japan in order to protect itself from the strong yen. Not wanting to put all its eggs in the Thai basket which got flooded last year, they diversified and are increasing capacity in Malaysia.
A second assembly line is being added at Honda’s plant in Malacca, where it plans to make small cars like the Jazz (US market Fit) and hybrids. This line is expected to be operational by the end of 2013 and will increase production to 100,000 cars a year. After a $111 million (€90 million) investment, work has begun on the second line.
Malaysia is a large market that discourages importing cars with high taxes. However 100,000 cars per year means a high probability of local export of the cars built in Malacca.
Malaysia is a large market that discourages importing cars with high taxes. However 100,000 cars per year means a high probability of local export of the cars built in Malacca.