The company has now bagged the fourth position in terms of total profit sales which is mainly contributed by Amaze which is a sedan version of the popular Brio model. Amaze has contributed a chunk of profits to the company with 50% sales. Honda has managed to release 16,000 units and is working on building more models at the established factory in Greater Noida with an amazing 120,000 unit production capacity. Honda aims to initiate production at the reputed plant in Rajasthan next year. The overall profit sales have expanded at enormous levels to Rs 2500 crores compared to the levels noticed in 2008.
Top company officials were questioned about why Indian centric cars are not a practicable strategy.
On the effective strategies to turnaround events during the turbulent phase in car economy, the reply was, last April two challenges occurred, the first was the downgrade of Indian rupee and upgrade of yen. In 2012, the rupee proved to be 30% weaker than yen which lead to the increase in import values at 30%. The robust increase in petrol values is another reason, the petrol prices increases to 10% last May and market values of petrol models reduced. Few years ago Honda was working on diesel launches, and the localization levels have increased. Amaze is the first ever diesel model to arrive, and the company is working on higher diesel figures. The sales of Amaze have increase to more than 90% which has resulted in lesser vacillation with exchange values. The same localization trend will be carried out with respect to future launches.
On whether the Amaze will be rolled out to the international market since the company has formed a strong export levels, the reply was Honda has exported cars to the African market with 2,500 volumes of Brio. We aim to work on the possibilities of exporting Amaze, this can happen only when there is utmost satisfaction from domestic segment since the waiting periods are pretty lengthy at four to five months.
On releasing new products, the company is geared to release four products within 2015, which would include a multipurpose vehicle (MPV) with seven seats, next gen Jazz and compact Sport Utility Vehicle and a refreshed City model within 2014.
On the stiff competition that would arise with the launch of Honda’s first compact SUV or MPV the reply was the press announced the same concerns with Amaze, but with the extended waiting period of four to five months, the car is a grand success. The features that have lured customers are the roomy interiors, mileage and design. The company will work with the same formula in future launches as well and certain that the company has the potential to expand at a much rapid pace with newer launches.
The weakening Indian rupee is the main concern that is preventing Honda to establish a strong base in India. The success of Amaze showcases the company’s skill to explore various segments. Honda aims to undertake its first business proposal in the multipurpose and compact SUV segment which should work in favor of Honda after the success of Amaze.
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I have been writing content for auto blogs for quite a long time now. My passion lies in this field and I love to picture cars as well.
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