The amazing overnight success of Honda Cars India is obviously credited to the launch of the Amaze compact sedan. Post launch, this baby sedan has seen only increasing success and spiraling demand bringing in great volumes to its maker. The demand for the Honda Amaze has increased so much that Honda has set to work on increasing the production capacity of the Amaze, as the car’s waiting period is increasing day by day and Honda does not want to displease its customers.
The Honda Amaze’s waiting period has become 7 months for its petrol model and its diesel model’s waiting period has crossed 4 months. Thus, to reduce the waiting period and keep the customers happy, Honda Cars India has announced to pump up the production capacity of the Amaze sedan.
The Honda Amaze was launched in the month of April, 2013 and has already gone a long way in terms of popularity and sales records. With a very competitive starting tag of Rs 4.99 lakhs for its petrol variant and Rs 5.99 lakhs for its diesel model, the Amaze has also able to challenge the segment leader Maruti Swift Dzire entry level sedan and give it a run for its demands. The Amaze has already gone home to over 18,000 satisfied owners by the month of June, 2013. This sales rate is really remarkable, as Honda Cars India has a relatively small operation in India and currently has a total production capacity of 10,000 vehicles per month.
Honda has experienced at whopping 45 percent of growth in India and the total sales rate had 60 percent of Amaze sales only, which is expected to rise even more. The demand for this already hot selling compact sedan is in the rise and Honda does not have the capacity to cope up with the demand, thus the company has to act fast enough to keep all its prospective customers satisfied, as long waiting periods also do not go down well with customers for long. Moreover, if the customers are not willing to wait too long to get their favored car home then they might even cancel the order, which the Japanese company won’t certainly like.
It is also important to remember that the segment leader and very popular Maruti DZire is available in the market for no waiting period and thus, the prospective buyers might as well choose to go for this tried and tested hot favorite over the new Amaze. Thus, quickly sensing the danger, Honda India has already announced to increase production of the Amaze by including a third shift in its manufacturing facility from this November. Honda is also expanding in India, with its factory in Tapukara, Rajasthan, that will be operational from next year. With this new plant in the picture, Honda will have the total production capacity of 20,000 units per month from the current 10,000.
Honda is also all set to expand its product portfolio by 2014 with its next generation Jazz and Brio based MPV, while other two models are in the pipeline.