Honda Power Products eyes bigger share of Philippine market
The Honda Power Products group, under Honda Philippines, Inc., is targeting a 20% increase in sales as it expands its reach in the construction industry. Raymund M. Cristobal, Honda Power Products manager, told reporters on Nov. 9 that the company is expecting total sales to hit 35,000 units, from 28,800 units sold in 2015.
Honda Power Products sells various equipment such as generators, lawn mowers, water pumps, tillers, and trimmers. These are used in three main industries, namely: fishing, agriculture, and construction.
“Basically we cater to the fishing industry, that’s our major market right now, and also agriculture. And then we are adding up construction,” Mr. Cristobal said. “The construction industry in the Philippines is booming right now and we want to follow that up. We want to be one of those business partners helping out in the Philippine industry.”
Mr. Cristobal said the company expects to expand its market share in the construction industry to 12%.
The company’s ambition comes at an opportune time as Fuji Heavy Industries Ltd., a major player in the power products segment of the construction industry, announced that it would terminate its industrial products business to channel more resources into its automotive segment which manufacture the Subaru brand.
Mr. Cristobal estimated Fuji Heavy Industries holds 80% market share in power products used in the construction industry
“When they leave, we would be the branded engine that could possibly replace them,” he said, noting that the company plans to have a bigger hold of the market after each year.
The group currently sources its products overseas prior to selling it domestically, getting it from Thailand, Japan, India, and China.
Asked if there are any plans to establish a manufacturing facility in the Philippines, Mr. Cristobal said that the company is still waiting to grab a bigger market share but assured that they are already in the “planning” stage.
“In the future, once we get market share that’s the time when we would have a manufacturing facility for power products… We want to be a major market player. We are eyeing about 50% to 60% for power products. That’s our ambition actually,” he said.
Companies whose operations are involved in the construction industry supply chain are generally bullish in their outlook, as the government led by President Rodrigo R. Duterte injects more funds into public infrastructure. – Roy Stephen C. Canivel