Saturday, 4 May 2013

Strategy - All you want to know about Honda's plans for Indian market

The Japanese car maker, Honda in India just crossed 74,000 units in fiscal year ending 2012-13. The car maker has big plans for Indian market.The car maker until now is playing on low volumes, high pricing and good quality products. The car maker has now understood and felt the need to high volumes for Indian market since the time they tasted success after pretty good response of Honda's Amaze.

The car maker is expected to register 30% growth in fiscal year 2013-14 and will cross 100,000 volumes. However, this is not just enough. The car maker has earmarked 2500 INR Crore for its new facility at Tapukara near Rajasthan and will ramp up from current capacity of 1.2 Lac to 2.4 Lac until 2015. The car maker in order to make full volumes and not leave their plant unutilized, plans to make India an export hub and thus generate high volumes. By 2017, the Japanese carmaker plans to reach its maximum capacity of 2.4 Lac cars.

“We will export diesel engine components to Europe and South East Asian markets from India. This fiscal, the target is Rs 500 crore against Rs 332 crore registered in 2012-13,“ Honda Cars India senior vice president, Jnaneswar Sen said here on Monday at the launch of its new sedan, Amaze, in Kolkata.

For the new products expected for Indian market, company plans to introduce City diesel in early 2014 and thereafter plans to re-launch Jazz (In case demand of Amaze and City are above expectations, the Jazz launch could further be pushed). In early 2015, the company plans to introduce Compact MPV based on Brio platform which will also be powered by both Diesel and Petrol variants.

The company is also mulling to make new 1.2L i-DTEC engine and will power the entry level hatchbacks. No further details have been revealed on the same. More details could be read here. Below summarized are the points which Honda Motors is mulling for Indian market to achieve 10% market share by 2018.

  • Honda Amaze - Already Launched. Will play a crucial part in garnering volumes for Honda India
  • Honda City Diesel - To be launched by early 2014, the carmaker plans to get the volumes of City to 4,500 per month from current levels. There could also be a possibility of pre-poning launch of City Diesel to end 2013.
  • Small Diesel engine- Honda Motors R&D Chief has revealed their plans to launch 1.2L i-DTEC motor which could power the entry level cars for Indian market and Brio hatchback too.
  • Entry level car - Honda has revealed their plans to launch entry level car below current Brio hatchback and will compete with Alto and Eon.
  • New Sedan between City and Civic - With Civic already out of the Indian market, the Japanese carmaker plans to introduce another segment between City and Civic and should be called as "Crider". The Crider could be dimensionally similar to City, it is expected to boast of long wheelbase and top notch quality interiors like City but with improved and latest tech features. Expect Crider to come with both i-VTEC and i-DTEC engines. 

  • Jazz based Compact SUV - The new Jazz based Compact SUV is slated to be launched in end 2014 and would give competition to Ertiga and to be launched Chevrolet's Enjoy. It is also being decided at Honda to put this one on top priority and the work for this is to be fast tracked. 

  • Full size MPV - This full size MPV is codenamed as M-01 and will be a full size 7-seater typical Japanese MPV with a bigger motor and will compete Toyota's Innova. The Concept M was designed by the design studio at the Automobile R&D Center of Honda R&D Co., Ltd. in Japan and Honda is supposed to be making rapid progress in the development of a mass-production vehicle based on this concept model aiming for market introduction next year.


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