Honda runs out of motorcycle parts, buyers take hit
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Honda, which has an 80 percent share of the motorbike market in Vietnam, faces a shortage of parts. After years of using a semi-automatic motorcycle, Huy Manh of Hanoi decided to buy an automatic one, a Honda Vision listed at VND32-35 million (US$1,400-1,530).
But the price quoted at HEADs (Honda Exclusive Authorized Dealers) was VND44 million, and he has to wait for two or three weeks for delivery.
The production shortage and long queues in HCMC mean many showrooms have stopped taking deposits since they cannot guarantee delivery in time. It used to take buyers only around two or three days, and up to two weeks in case of special options, to get a Honda bike delivered. The waiting time is now two weeks to a month.
Honda blamed it on a global disruption in the supply of parts and materials. Its locally assembled models like Vision, Lead and SH Mode are the worst affected. It is impossible to know when supply would return to normal levels, it said, adding it is trying its best to ensure supply to dealers.
Buyers have to pay 20-30 percent more than the listed prices for a motorbike. They had been hiked by 1-5 percent only last month.
Honda sold two million vehicles last year, or 80 percent of the market share, according to the Vietnam Association of Motorbike Manufacturers, whose members include all major companies.
Supply is more stable for other producers, but their shares are too small to satisfy the market.
Honda’s shortage not only affects its own sales but also related businesses such as accessories, painting and maintenance.
Questions & Answers
Q.Which specific Honda motorbike models are most affected by the parts shortage?
Which specific Honda motorbike models are most affected by the parts shortage?
The models most affected by the shortage are Honda's locally assembled ones. These include the Vision, Lead, and SH Mode models, which are facing significant production issues.
Q.How much more are customers currently paying for Honda motorbikes due to the shortage?
How much more are customers currently paying for Honda motorbikes due to the shortage?
Customers are currently paying 20-30 percent more than the listed prices for a motorbike. This increase follows an earlier hike of 1-5 percent that occurred only last month.
Q.What is the primary reason Honda has given for the current parts shortage?
What is the primary reason Honda has given for the current parts shortage?
Honda has attributed the shortage to a global disruption in the supply of parts and materials. This issue is impacting their ability to produce motorbikes at normal levels.
Q.How has the typical waiting time for a Honda motorbike changed for buyers?
How has the typical waiting time for a Honda motorbike changed for buyers?
The waiting time has increased significantly, now ranging from two weeks to a month. Previously, buyers usually waited only two or three days, or up to two weeks for special options.
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