ASSIGNMENT NO.

COURSE TITLE: INTERNATIONAL BUSINESS

STUDENT NAME: BABAR SHAHZAD

REGISTRATION NO: 0019

CLASS: M.COM (8A)

SEMESTER: 4th

DATE OF SUBMISSION: 03-5-2020

TUTOR: PROF. FAROOQ

DEPARTMENT OF BUSINESS ADMINISTRATION

UNIVERSITY OF CENTRAL PUNJAB

FAISALABAD CAMPUS
 Difference Between Honda and Toyota
While Honda and Toyota are the two biggest names in the auto industry, there is a significant
difference between the two in terms of global reach and driving experience.

Honda is the world’s largest motorcycle maker whereas Toyota is the largest automobile
manufacturer in the world with the top line of hybrids and coupes in its pockets.

Let’s see how Honda cars compare against the Toyota’s top line-up.

Honda
Honda is a multinational conglomerate based out of Minato, Japan and is the largest
manufacturer of two-wheeled drives in the world.

It is one of the largest automakers in the world which is pretty much synonymous with safe,
economical, and fuel-efficient vehicles. Whether it’s the top-selling crossover SUV, the CR-V or
the NSX supercar or the seductively appealing Accord, Honda has a great line of hottest cars to
choose from.

Let’s not forget the classics such as the economical yet classy CRX Si and the very sleek and
seductive Prelude coupe which remains the best in its class. From the first real motorcycle, the
Model D, in 1949 to the sporty beast RVT1000R, Honda has come a long way to become one of
the largest motorcycle manufacturers in the world.
Toyota
Toyota is the world’s largest automotive manufacturer based in Japan. The history of Toyota,
like many other car makers, starts with something other than automobiles, in this case automatic
looms.

The company actually originated from “Toyoda”, as in Kiiciro Toyoda, son to the founder of
Toyota. The name was officially changed to what is now called “Toyota”. From the birth of the
founder Sakichi Toyoda to the dramatic success of the hybrid-electric car, Toyota Prius, the
company has been operating its business with a focus on increasing production and sales.

Today, Toyota is the market leader in the hybrid-electric car segment and the largest automaker
in the world.
 Difference between Honda and Toyota

History of Honda and Toyota

The Honda Motor Company was founded by the motorcycle builder Soichiro Honda in October
1946 but the history of the company goes way back to 1937 when Honda along with his friend
Kato Shichiro started Tokai Seiki.

The company won the contract to build piston rings for the Toyota Company for a short period
of time but later lost the contract owing to the poor quality of products. Toyota Motor
Corporation was started as a division of Toyoda Automatic Loom Works in 1933 under the
ownership of Kiichiro Toyoda, which was later renamed as the Toyota Motor Corporation in
1937.

First Vehicle of Honda and Toyota

Honda introduced its very first full-fledged engineered product in 1949 known as the “Model D”
and it was the first motorcycle manufactured by Honda which he appropriately named the
“Dream” D-Type motorcycle. Honda produced their first four-wheeled vehicle, a small pick-up
truck, in 1963 and named it “T360”.

Toyota released their first production vehicle, the Model AA sedan, in 1936. Toyota introduced
the world’s first mass-produced hybrid vehicle, the Prius, to the general public in Japan in 1997
and released in worldwide in 2001.

Approach of Honda and Toyota

Honda is the market leader in the two-wheeler segment and has been known for their reliability
and economical cars. Honda is more like a people’s brand and they manufacture vehicles that
connect to the road – minimalistic designs, simple yet beautiful with no extra bells and whistles.
Honda cars are little more sophisticated which allows them to make more conventional vehicles.

Toyota, on the other hand, is all about fuel-efficiency and safety at its best and less about the
overall driving experience. This is why all of Toyota’s vehicles look similar in design.

Maintenance for Honda and Toyota

Honda cars are known for their high-quality engines and proprietary fluid formulations. They
develop a unique maintenance program for each of their vehicle they manufacture to keep tabs
on the vehicle’s maintenance needs.

Honda recommends its proprietary fluid called “Hondabond” for all their vehicles – be it the
brake fluid, the gear oil, or power steering fluid.

Toyota is all about safety and dependability when it comes to maintenance so they are more
likely to stick to standard fluid selection in their vehicles.
Reliability
Complete polishing of every product is the priority of Honda and Toyota in terms of durability
and reliability. Honda focuses on the customer satisfaction and safety. We think that Toyota is a
better and relaible choice to own now. Toyota is in the market for past many years. Honda has
more life it requires more maintenance. We can say that Toyota is a better option after
comparing it to Honda.

Performance

The comparison of both these vehicles shows that the performance of Honda vehicles is better.
You will definitely enjoy your ride with better acceleration and responsive handling of Honda. If
we take an example of Odyssey version of Honda, it has 9.1 performance rating. Sienna by
Toyota has 8.4 overall rating. It shows that even a half point matters when calculating the
vehicle’s performance. So, if you are looking for a vehicle that is full of high-performance, go
for Honda.

Interior

If something comes after the performance of a vehicle, it’s the interior. Honda has sleek and
attractive interiors that gives the higher performance. The unique design and upscale material
allow every Honda model to stand for their own features. With average and most common
interior design, Toyota has failed to impress somehow. The small and midsize Honda cars are
built by focusing on size and compact making them more family-friendly.

Economic

Let’s compare the prices of Honda and Toyota. Honda offers the more affordable range of cars.
The starting price of Honda vehicle is $16,000 and the cost of Civic starts from $20,000
onwards. The price range of both the cars are almost the same. It differs only in the flexibility.
 The Complete Comparison
After point-to-point car comparison of Honda & Toyota, let’s take a look at the brief summary of
their distinct features in the table below:

Features Honda Toyota

Transmission 5-speed automatic, 5-speed 5-speed manual, Automatic-4
manual, 6-speed automatic speed, CVT
Mileage (city/highway) 38/38 32.41
Wheelbase 106.3 in. 102.4 in.
Curb Weight 2628 / 2690 2530 / 2595
Engine 1.8-liter SOHC i-VTEC 1.8-liter DOHC VVT-i
Cargo Volume 12 (cu.ft.) 13.6 (cu.ft.)
Horse Power 140 at 6300 126 at 6000

There is no secret that, Toyota vehicles are the most fuel-efficient and safest to drive on which
you can rely for years, Honda somehow is not capable to give valuable fuel consumption.

Global Reach for Honda and Toyota

Toyota is still the most popular brand in the UAE because of its reliability and affordability.
Toyota Corolla, with more than 43 million units sold worldwide, is still one of the most popular
sedans in the world and Toyota Camry is the people’s choice of car among the America’s richest
residents. The company’s top line includes hybrids and coupes which have earned it a great deal
of popularity in the global market.

Honda’s entry crossover SUV, the CR-V is one of the best-selling SUVs in the United States.
Honda still triumphs in the sports vehicle segment with the legendary NSX which represents the
ultimate combination and sportiness and efficiency.

Pricing Strategy:

Honda

In Asia

Honda’s pricing strategy is based on an ethnocentric alternative which means the price of the
same product of Honda is approximately same all around the world. It is true that sometimes
because of some fluctuation in currency the price will vary in a different country but in general,
the base price of a similar product is same.
In Pakistan

Honda Atlas Company Pakistan has a mission to give good quality cars, achieve product-quality
leadership overall the Pakistan. The pricing strategy has been applying by this formula that Cost
+ Profit = Price. Honda Atlas is very crucial in the providing Quality product to customers. The
perception behind that brand make as it talks itself and then customer will attain and will not as
such consider price. IMC’s perception is that quality is the initial attraction of customers and the
pricing is the strong support of product and IMC using pricing strategy as compliment part of
success achievement. The standard of quality they do not perceive to give burden of high price at
customers

Toyota

Toyota uses a combination of the following pricing strategies:

1. Market-oriented pricing
2. Value-based pricing

Toyota uses the market-oriented pricing strategy to determine prices based on market conditions
and the prices of competitors. This pricing strategy is notable in the vast majority of Toyota
products, such as sedans and trucks. However, the firm also uses the value-based pricing
strategy, which sets prices based on the actual and perceived value of the product. The company
uses value-based pricing for high-end or more expensive products, such as the Prius and Lexus
cars. This part of Toyota’s marketing mix shows that the company determines price levels based
on market conditions and customers’ perceptions.
Their main objective is to make profit by allowing credit payments to their customers at low
interest. The pricing strategy in the marketing mix of Toyota is based on competition, segment,
geography and demand. Their prices are flexible to changing market conditions and prices of
competitors thus affecting their selling prices. The price range of their cars changes according to
the model, add options and make. Toyota’s profits mainly increase because of the pricing and
features offered with their products. They have always stood by the company’s mission of
satisfying customers’ needs and wants by producing high quality automobiles at affordable
prices. Such affordable prices also help the brand in their marketing.

Personal Opinion

Both companies pricing strategy is good in Asia but the Honda company pricing strategy is more
effective as compare to the Toyota In my opinion Honda company products are more reliable the
Toyota company customer service/workshops is less in Pakistan and there may be chance of non-
availability of Toyota parts because Toyota is the Japanese company. There is no secret that,
Toyota vehicles are the most fuel-efficient and safest to drive on which you can rely for years,
Honda somehow is not capable to give valuable fuel consumption.

Features Honda Toyota

Transmission 5-speed automatic, 5-speed 5-speed manual, Automatic-4
manual, 6-speed automatic speed, CVT
Mileage (city/highway) 38/38 32.41
Wheelbase 106.3 in. 102.4 in.
Curb Weight 2628 / 2690 2530 / 2595
Engine 1.8-liter SOHC i-VTEC 1.8-liter DOHC VVT-i
Cargo Volume 12 (cu.ft.) 13.6 (cu.ft.)
Horse Power 140 at 6300 126 at 6000