Honda Japan production dives 62.9pc in March

TOKYO, April 25 (AFP): Japan's Honda Motor Monday reported that domestic production plunged 62.9 per cent year on year in March when a massive earthquake and tsunami hit the country. Production plunged to 34,754 units in Japan while worldwide total production was down 19.2 per cent at 282,254 units. For the fiscal year to the end of March 2011, worldwide production was up 8.2 per cent at 3,575,362 units compared with the previous year, Honda said. Also on Monday Mazda announced a massive 53.6 per cent drop in domestic production year on year in March, with global production down 33.8 per cent. The March 11 disasters damaged production facilities and atomic power plants in the northeast, triggering the world's worst nuclear crisis since Chernobyl and resulting in electricity shortages and disruptions to the supply chain in Japan and worldwide. Many key component manufacturers are based in the northeast and the shortage of parts has also hit vehicle production overseas. Leading carmakers Toyota and Nissan will also announce their results later in the day. With auto production stalled, demand for second-hand cars has soared in the disaster-ravaged northeast, Jiji news agency reported. In hardest-hit Miyagi prefecture, about 150,000 vehicles, or 10 per cent of those in the area, were damaged or destroyed leading to a boom in second- hand sales. Prices have surged by 100,000-150,000 yen ($1,200-$1,800) for many models, a dealer told Jiji following the weekly used-car auction in the town of Murata.