Honda Motorcycles will focus on the domestic market

Honda Motos de México has decided to halt its export of two-wheeled vehicles to the United States due to the 125% tariff it pays for containing Chinese parts; and announced that it will focus on serving the growing domestic market.

Although exports from the Guadalajara plant are minimal—about 8% of total motorcycle production—the RX model is discontinued for that market because its sale is "unviable" at that cost. However, the Navi model continues to be exported, as its parts come from India.

Eduardo López, vice president of manufacturing at Honda de México, said in an interview with El Economista, "Right now, since we import many parts from China, most of the local content is Chinese, we have a tax that has risen to 125%, so it's unaffordable."

However, Honda, the second-largest motorcycle supplier in Mexico, faces significant opportunities to increase its production in the country, given the growing demand in the western part of the country.

"We're trying to modify our manufacturing to make it more flexible," he explained.

“The Honda assembly plant produces 580 motorcycles per day in two shifts, which we opened in September 2022. We've been operating with two shifts for three years, and the projected production for this year is good. The forecast is to produce 142,000 units, approximately 6,000 more motorcycles than last year,” López said.

According to the Mexican Association of Motorcycle Manufacturers and Importers (AMFIM), demand for motorcycles has grown by 45%, which has continued since 2022, marking the first time that motorcycle sales surpassed those of cars.

The vice president of Honda Motorcycles said the Japanese company increased the number of models it produces in Guadalajara in a three-year period. "We were producing four models, and three years later, we're up to 12 models; the speed was incredible. Most of our associates have been producing for less than three and a half years, because we had to grow due to demand."

However, he clarified that the increase in motorcycle sales "is not improvised" because Honda reviews quality, which is unique to the brand in its methodologies for implementing and, above all, developing a new model.

In Mexico, the Italika brand accounts for 70% of motorcycle sales, while Honda is second in sales.

The motorcycle market in Mexico has great potential, and Honda, which assembles 12 motorcycle models at its El Salto, Jalisco, plant, including the NAVi and XR150 models, says the western and northern regions of the country offer significant growth potential.

Honda's motorcycle lineup ranges from urban scooters to high-performance bikes like the CBR1000. Honda Motorcycles currently has more than 190 dealers and four high-displacement Powerhouse models.