Tech

Honda Ramps Up SUV Production For US Market

By James Yu , Nov 12, 2016 08:23 AM EST

America is considered as one of the biggest auto markets in the world. And as demands for SUV in its auto market increases, automakers shift their focus to meet the demands. Honda, one of Japan's leading automakers is doing just that as it ramps up its production of SUVs in its U.S. based plants.

The SUV Production Begins

Reuters reported that Honda Motor Co will start its production of SUVS early next year. Among those productions that will be ramped up in its East Liberty, Ohio and Alabama Plants include the Acura MDX SUV, Pilot, Ridgeline pick-up truck and Odyssey minivan. Honda is not alone in this endeavor as Toyota Motor Corp. and Nissan Motor Co. are also doing the same. It was stated in the same report that the latter two automakers have also been importing SUV models in large numbers to fill the gap in production.

Factors In The SUV Demand Increase

Apparently, the need of cost-conscious consumers for multi-tasking vehicles and historically low U.S gasoline prices are among the factors that caused the increase in the demands for the SUVs in the U.S auto market. SUVs are not exactly known to be a fuel-efficient segment in the auto industry but given the fact that the U.S. has very low gasoline prices, it's safe to say that American consumers can afford the luxury.

Honda's Other Course Of Action

The report from Reuters mentioned that Honda may also do what Toyota and Nissan have done and import SUVs from its base in Japan. In an interview, American Honda Motor Co, CEO, Toshiaki Mikoshiba, stated that they would also like to consider their production options in Japan while maintaining their current overall capacity in North America and respond to the strong demand by producing more light trucks.

What This Means

With productions being ramped up not just by Honda but also by other automakers, U.S consumers may not need to worry about the high demands being met. Of course, the production will take some time but it will certainly not be a very long wait for U.S consumers. 

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