After a hiatus of more than four years, Honda will restart production of mini cars for Japan.
The company stopped making cars with engine displacements of 660cc or less back in June 2007 and instead farmed out production to Yachiyo Industry Co, one of its subsidiaries. Since that decision its sales have tumbled in the segment to around 160,000 cars a year as Honda chose to focus on other areas in key markets.
However, demand has remained strong for fuel efficient vehicles and they now account for 30 per cent of all car sales in Japan prompting Honda to think again.
Back in 2009, Honda President Takanobu Ito outlined that the segment will account for half of the domestic auto market in the future. Honda’s first new mini car will be rolled out in December with two more models to follow in 2012 as the company targets sales of more than 300,000 units within five years.
