Honda Motor Co. announced plans to release the NC700X, the first in a planned line of large, inexpensive motorcycles, on Feb. 24. The NC700X Powered by a newly developed 700cc engine, it will be priced from 649,950 yen, around the same cost as existing 400cc motorcycles.
Imported parts, including frame and engine components shipped from Thailand and China, account for around 40% of the new model. In the past, this ratio for the automaker's big motorbikes was 5% or lower.
Using more imported parts reduced production costs and will also ease foreign exchange risks, enabling Honda's motorcycle operations to be profitable in all regions even at current foreign exchange levels, according to the company. The new two-wheeler can travel around 41km on a liter of gasoline, a 10% improvement from earlier motorcycles in the same class. Other models using the same engine and frame will be released in succession beginning in April.
In addition to domestic sales, Honda will export the motorcycle to Europe, the U.S. and Brazil and hopes to stimulate demand for large motorbikes by holding the price down.
Source: Nikkei
