Honda Motor debuted the N-WGN at the Tokyo Motor Show.
TOKYO -- Minivehicles and next-generation environmentally friendly cars are the main attractions at the biennial Tokyo Motor Show. The presence of so many minicars has been a surprise for many reporters from outside of Japan who gathered at Tokyo Big Sight for the 43rd motor show.
At the event, Honda Motor is debuting its new minivehicle, the N-WGN.Honda's president, Takanobu Ito, noted at the car's media unveiling that the automaker will continue its "production of unique products."
The N-WGN, which is classified as a height-wagon minivehicle, officially went on sale Nov. 22, priced between 1.13 million yen and 1.63 million yen ($11,160 and $16,100), depending on add-ons.
Honda is aiming for sales of 12,000 units per month. It says it has received advance orders for some 6,200 N-WGNs as of Nov. 19.
Motor shows are typically venues for carmakers to display concept cars that are years away from going on sale. Honda's businesslike approach of showcasing a commercially available car is a sign of how serious the automaker is about being a minivehicle powerhouse.
Honda sold about 720,000 total vehicles in Japan in the fiscal year through March 2013. Nearly 80% of its sales are already for its minivehicles, namely the N Box line, and compact cars like the Fit. But its market penetration is nowhere near the levels of Daihatsu or Suzuki.
Sales rally
It was the global financial crisis that began in late 2008 that prompted Honda's shift to minivehicles. To maintain capacity utilization rates at its domestic plants, Honda mobilized engineers involved in its Formula 1 auto racing team for new minivehicle development. The result has been the popular N Series.
Though the strategic change appears to be paying off, Honda cannot rest easy yet. Earlier this year, Nissan Motor and Mitsubishi Motors debuted a jointly developed minicar. The second incarnation of this car is also being premiered at the Tokyo show and will go on sale early next year. Nissan, too, is planning to produce minivehicles soon.
Suzuki's new concept car, the Hustler Coupe, on display at the show
On Nov. 19, Suzuki unveiled its Alto Eco minicar, which can run up to 35km on one liter of gasoline, the highest fuel efficiency among gasoline-powered vehicles.
High-end minivehicles in particular are proving to be great profit sources for carmakers. N Box models priced between 1.4-1.7 million yen are selling well and demand is growing, said a Honda official in charge of dealerships in the Kanto region of greater Tokyo.
"Households that use minivans while raising children switch to minivehicles after the kids grow up," said a manager of another Honda dealership.
The task now for Honda is to deploy its technological advances and know-how to expand minivehicle business in emerging economies, where small cars are the biggest sellers.
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