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Market Entry Strategies Case Study

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Case Title:

Honda in China

Publication Year : 2005

Authors:  Rajendar Singh, Sumit Kumar Chaudhuri

Industry: Automobiles

Region:China

Case Code: MES0020

Teaching Note: Available

Structured Assignment: Available

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Abstract:
Since the establishment of its first automobile manufacturing unit in 1998, Honda became the third biggest foreign passenger carmaker in China by 2004. When it started exporting its Jazz cars to Europe in June 2005, Honda also became the first automaker to export cars manufactured in China to European countries. Despite the traditional outlook of Europeans who considered 'Made in China' goods as low-quality products, Honda has set up a 100% export-oriented auto manufacturing plant in China.

Pedagogical Objectives:

  • To discuss the growth strategies of Honda in China and Honda’s initiatives to make China an export base for its European market.

Keywords : Honda Motor Company Ltd.; Chinese automobile industry; Competitive advantages in China; Sales and distribution network of Honda; Joint venture related inefficiencies in China; Honda Accord in China; Honda’s joint ventures in China; Jazz cars; Market Entry Strategies Case Study; Cost optimisation techniques of Honda; 40% local content rule in China; Chinese tariff system; Guangzhou Honda Automobile Company; Sundiro Honda Motorcycle Company; Weak supplier base in China; Peugeot

Contents : 
China’s Automobile Market: A Brief Landscape
Honda’s Entry in China
China: Honda’s New Automobile Exporting Base
China is Emerging as Both an Attractive Market and a Low-Cost Supply Base
Automobile and Motorcycle Sales in China

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