A Honda subsidiary; Honda Motor de Argentina S.A. that produces both automobiles and motorcycles will cease production of automobiles in 2020. Honda plans to use the additional production capacity for manufacturing motorcycles like its Supercub.
In its press release, Honda says the move is necessary to strengthen “…its automobile business structure in the face of abrupt changes occurring to automobile industries around the world”. The Campana, Argentina based factory employed approximately 1,000 people and had been producing Honda’s HR-V sport utility vehicle. It produced around 10,000 HR-V sport utility vehicle units and also approximately 148,000 motorcycles.
Whether motorcycle production would remain the same, be ramped up for existing or new models is unclear. However, Honda’s website claims that the Campana factory currently produces its Biz 125 and Wave 110 models.
Supercub models made up approximately 40% of that total including 9,111 Biz 125s and 47,473 Wave 110Ss. That means 60% of its production went to other motorcycle models. Unfortunately, Honda does not say which other models the factory produces.
People of both genders aged 20 – 40 purchase the Supercubs. Their incomes are $800 or less. To capture this market, Honda prices the two models aggressively at $1,850 for the Biz 125 and $1,150 for the Wave 110S.
According to Honda, Argentina has annual motorcycle sales of over 720,000 units. Perhaps Honda’s new production plan is trying to eat into those annual motorcycle sales with more Honda bikes.