La Salle Academy

Iligan City
Senior High School Department

A Statistical Analysis Report on the

Automobile Sales of Honda Group for the last 18 years

Submitted by:

Joie Madeleine L. Paderanga

Rens Kenji M. Aquino

Nasliah B. Macadato

Dhaniah Janica M. Al-rashid Ramos

Submitted to:

Ms. Honey Mae Villaver

December 2019
Introduction

Honda is a Japanese company which also happens to be one of the world’s

largest conglomerate corporations. Since 1963, Honda has been offering various
automobile models and technologies to costumers worldwide. It has produced around
$141.47 billion in fiscal year 2019, which is more than twice as it was able to do back in
2002 (at $67.79 billion). Much of its revenue was generated from automobile sales, as
Honda’s worldwide car sales surpassed 5.3 million units sold.

Honda has been the world's largest motorcycle manufacturer since 1959, as well as the
world's largest manufacturer of internal combustion engines measured by volume,
producing more than 14 million internal combustion engines each year.[4] Honda
became the second-largest Japanese automobile manufacturer in 2001. Honda was the
eighth largest automobile manufacturer in the world in 2015.
Honda was the first Japanese automobile manufacturer to release a dedicated luxury
brand, Acura, in 1986. Aside from their core automobile and motorcycle businesses,
Honda also manufactures garden equipment, marine engines, personal watercraft and
power generators, and other products. Since 1986, Honda has been involved with
artificial intelligence/robotics research and released their ASIMO robot in 2000. They
have also ventured into aerospace with the establishment of GE Honda Aero Engines in
2004 and the Honda HA-420 HondaJet, which began production in 2012. Honda has
three joint-ventures in China: Honda China, Dongfeng Honda, and Guangqi Honda.
In 2013, Honda invested about 5.7% (US$6.8 billion) of its revenues in research and
development.] Also in 2013, Honda became the first Japanese automaker to be a net
exporter from the United States, exporting 108,705 Honda and Acura models, while
importing only 88,357
Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on the Tokyo
Stock Exchange and the New York Stock Exchange, as well as exchanges in Osaka,
Nagoya, Sapporo, Kyoto, Fukuoka, London, Paris and Switzerland.
The company has assembly plants around the globe. These plants are located in China,
the United States, Pakistan, Canada, England, Japan, Belgium, Brazil, México, New
Zealand, Malaysia, Indonesia, India, Philippines, Thailand, Vietnam, Turkey, Taiwan,
Peru and Argentina. As of July 2010, 89 percent of Honda and Acura vehicles sold in
the United States were built in North American plants, up from 82.2 percent a year
earlier. This shields profits from the yen's advance to a 15-year high against the dollar.
Presentation of Data

Bar Graph 1.Number of automobiles sold by Honda in 18 years (in 1,000 units)

Computations

X= in thousand units

YEAR X 𝑿𝟐 F P(X) X*P(X) 𝑿𝟐 ∗ 𝑷(𝒙) 𝑿𝒊 − 𝝁

2002 2,666 7,107,556 1 1/18 148.11 394,864.22 -1,188
2003 2,888 8,340,544 1 1/18 160.44 463,363.56 -966
2004 2,983 8,898,289 1 1/18 165.72 494,349.39 -871
2005 3,242 10,510,564 1 1/18 180.11 583,920.22 -612
2006 3,391 11,498,881 1 1/18 188.39 638,826.72 -463
2007 3,652 13,337,104 1 1/18 202.89 740,950.22 -202
2008 3,925 15,405,625 1 1/18 218.06 855,868.06 71
2009 3,517 12,369,289 1 1/18 195.39 687,182.72 -337
2010 3,392 11,505,664 1 1/18 188.44 639,203.56 -462
2011 3,529 12,453,841 1 1/18 196.06 681,880.06 -325
2012 3,108 9,659,664 1 1/18 172.67 536,648 -746
2013 4,104 16,842,816 1 1/18 228 935,712 250
2014 4,323 18,688,329 1 1/18 240.17 1,038,240.5 469
2015 4,367 19,070,689 1 1/18 242.61 1,059,482.72 513
2016 4,743 22,496,049 1 1/18 263.5 1,249,780.5 889
2017 5,028 25,280,784 1 1/18 279.33 1,404,488 1,174
2018 5,199 27,029,601 1 1/18 288.83 1,501,644.5 1,345
2019 5,323 28,334,329 1 1/18 295.72 1,574,129.39 1,469
𝜇 = 3,854 N=18

𝜎 2 =8

𝜎2 = 8

𝜎 = 2.83
𝜎
CV= ∗ 100
𝜇
 2.83
= ∗ 100
3854

=0.07%

The average automobile sales of Honda in the last 18 years are at 3,854,000. There
was not a single year in which the number of units sold is the same. This means that the
frequency is always at 1.The variance is at 2.83. Meanwhile, the coefficient of variance
is at 0.07%.

Interpretation

Each bar represents the number of automobiles sold by Honda from 2002-2019, in
thousands. In 2002, Honda was able to sell 2,666,000 automobiles. It grew double in 18
years, as in the present time, they were able to sell more than 5,323,000 units, and
2019 is not even done yet. The Honda automobiles sale grew by almost 200% in 17
years. It had went through three years of sales recession, in 2009, 2010, and 2012, in
which the number of sales had significant drops, but quickly got back up right after it.
Honda reached the 3 millions sales mark in 2005, and it has reached 4 million sales in
2013, and finally, it has been able to reach the 5 million mark in 2017. In these years,
Honda has been able to sell more than 69,380,000 cars, averaging 3,854,000 annually.
It implies that when the growth of sales numbers is more than the compared base, thus,
it is termed as positive sales growth. We can see how the sales of Honda has improved
so much in these years, which is also the reason why they have been able to get a large
revenue. This actually makes them one of the largest car producers in the world. They
have also become a very reputable and reliable brand, as the Honda Reliability Rating
is 4.0 out of 5.0, which ranks it 1st out of 32 for all car brands.

Conclusion and Recommendation

Summarizing the year in the financial report of 2019, the growth of sales
numbers is more than the compared base, thus, Honda credited the positive year to the
strong sales of their N-BOX model.

Selling autos does not come easy. You would have to pay for lots of taxes,
production costs, tariffs, materials, labor, etc. The thing is, you cannot even make sure
that you would be able to get a high profit out of it. While it may be hard with all the
costs, there are several ways in which you can make this business grow.

1.) Study your competition. To take market share from competitors, you have
to understand their business model compared to yours. Determine the type of vehicles
other dealerships offer and which ones are strong sellers. Add those in-demand
vehicles to your own stock to boost your market share.

2.) Review the advertisements aired by competing dealerships, sales specials

and the type of customers they attract. Produce similar advertisements to target those
customers, only better and with more attractive deals

3.) Reduce your car prices across the board to increase your dealership’s
market share, and offer more money than the Blue Book value for trade-ins. Establish a
policy where you will try to match or beat prices offered by private sellers to take that
market share.

4.) Offer custom cars at your dealership to appeal to car aficionados.

Participate in local car shows with your dealership’s best custom cars on display to
appeal to this audience. Hire a custom car expert if necessary to keep you updated on
the latest trends and designs
.
 5.) Set up a referral program for past and future car buyers. Offer them a
cash payment, free repair service or coupon toward a future visit if they refer other
people who are on the market to buy a car.

6.) List your cars on online auction and selling websites. One way to
increase your market share is to simply increase the size of the pie. Find car buyers
from other states and regions. Ship or deliver cars promptly and offer benefits to
customers from remote locations as well if they refer other buyers to your service.

7.) Build and sell a limited edition car. Building a car only few buyers can have
is one way of being able to raise prices of the vehicle and thus, be able to attract rich
people. This can also help make your car brand more popular.