Latest Car News in India

Monday, October 03, 2011

By Pranjal Gera

Honda's new strategies for India

Honda Brio, which is priced from Rs. 3.95 lacs, is one of just four cars to be launched in the last 10 days. Honda's small car Brio's launch is not just a launch, and price is one factor. Honda Siel, had always believed in being luxury brand, until it launched small car Honda Brio, and entered the volume competition. The company has made significant changes in its strategies and goals, by eradicating media test drives, and shifting focus on creating dealer networks in cities which fall under Tier-II and Tier-III categories. The company is also working hard on localisation of raw material. Honda has 99.9% share in the company, and the rest goes to Siel.

Honda Brio Pictures

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Honda Siel's Director (sales and marketing), Seki Inaba, said that the company is confident that India would soon get ahead of China, and be the world's No. 1 car market. According to him, Honda Brio is the initial step towards focusing on growth trajectory in India.

Since 1990s, Honda led the sedan market by Honda City. This was the case in the used car market too, and Honda cars garnered more value than other brand cars. But, recently, Honda's sales as well as brand value, has declined. The reason are not one or two, but many, including- poor pricing strategy (which many call as 'brand arrogance'), lack of focus and global woes. Due to all this, competitors like Ford and Volkswagen have bettered sales in India.

Honda City Pictures

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Now, for the very first time, Honda is attempting to compete in the volume segment, i.e. the entry level hatchback segment, which account for over 60% of the total Indian automobile market. However, how much it helps the company remains to be seen.

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