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Honda sells sans taxi ploy



Have you ever wondered why there are no Honda cars used as marked/metered taxis? During the launch of the new Honda HR-V in Paranaque last week, reporters again asked Honda why this is so and Honda Cars Philipines Inc. president Noriyuke Takakura simply said: “It is not our strategy.”

While this may seem the best strategy to car companies, like Toyota, Hyundai and Mitsubishi, to increase car sales in a period where there is a slump in consumers buying cars, Honda believes that this road would compromise their strategy of delivering customer’s ownership experience of a Honda automobile.

“For a customer to see the same model they own on the streets as a for-hire taxicab will adversely affect their ownership experience,” Takakura said.

Takakura also believes that catering to taxi fleets isn’t as profitable, since large volume clients negotiate for massive discounts, something that Honda does not do. He also said big discounts and seeing Hondas operating as taxicabs would also negatively affect resale value, something that their customers will not appreciate.

There is allegedly a “no taxi” clause on the deed of sale of every Honda sedan sold in the Philippines.

Meanwhile, Takakura announced at the HR-V launch that HCPI’s SUV segment managed a nine per cent growth from January to June this year compared to the same period of 2017.

This performance is impressive, despite the nationwide downtrend in car sales for 2018 as reflected in a recent CAMPI report.

For Takakura, crossovers and SUVs are the bright spots for Hondas automotive line-up for 2018. For this segment Honda sold 5,067 units in the first half of the year, a solid nine per cent growth as stated earlier.

Honda’s 7-seaters, the BR-V and the CR-V are still its best-selling products with the BR-V selling 2,191 units in the first semester of 2018 or 11,00 units sold since its launch in December 2016. The CR-V sold 1,775 units in the first half of the year or a total of 5,205 units sold since introduction.