Honda to cut prices

Honda is planning to cut the prices of its motorcycles, according to Japanese Newspaper The Daily Yomiuri.

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They are reporting that the Honda plan to reduce the prices in Japan on around 45 models over three years, as the whole market suffers from the decline in motorcycle sales.

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Honda plans to slash the prices of all the motorcycles it sells domestically to prices of that in 2000.   

To cut costs, Honda plan to increase production in other Asian nations where personnel expenses and production costs are low, and use more inexpensive parts produced overseas.

It is also reported that in a bid to cut development costs they are going to reduce the time to develop a new model from the current two years to between one and one and a half years.

This could impact other companies that are also suffering from slow sales.