Honda Cars India aims for Rs 800 crores export expenditure for Financial Year 14

Honda Cars India Limited is recognized for its outstanding range of cars in the hatch and sedan segment such as City, Jazz, Brio, Amaze and so on. The company is geared to pierce though the profit segment with an aim to enhance its export segment at Rs 800 crores in the 2013 to 2014 period, as stated by company representative. According to Jnaneswar Sen the Senior Vice President of Honda Cars during a Bangalore visit to witness the rally called drive to discover with Honda Amaze ‘’the export segment will consist of Rs 600 crore expenditure for components, and  we will spend Rs 200 crores on 6,000 models’’

Honda India during the 2012 to 2013 period has invested huge amounts of Rs 232 crore on the export of car components, and around 2,500 products for Rs 85 crore. The company’s favorable export segments are South Africa, Bhutan, Nepal and countries of South East Asia and Europe. The company an outstanding production capacity at its reputed plant in Noida at 1, 20,000 pieces on an annual basis, and car components are manufactured at the popular Tapukara plant in Rajasthan. Honda aims to releases its products from the plant in Rajasthan, and also constructs a unit with an initial Rs 2,500 crore value within the next financial period. The product completion target will be around 1, 20,000 products on yearly basis.

During the April to July period of 2013, Honda has released around 40,350 products leading to an admirable 65% growth, this is a massive elevation compared to 24,462 pieces in the corresponding period. Honda has developed a smart move with some practical thinking evident with its impressive sale figures in 2013 August, which is the launch of Amaze, the car is recognized for its trendy exterior sculpt and mind blowing mileage of 25.8kmpl.

The demand for Amaze was enormous that Honda has to work out effective strategies to obtain equilibrium between demand and supply and had to build many more Amaze products to match the demand requirements. The company is geared to establish a third unit in its esteemed Greater Noida factory scheduled for November.

The unfavorable market conditions in India has stirred pressure in domestic sales of most auto firms, on the topic of increase in car costs due to depreciation of Indian rupee versus dollar, the company’s reply was ‘’we will study the situation and we will have not yet thought of a solution.’’

Honda India is banking on the vibrant and exciting festive period to register impressive sale volumes, the other silver lining factors would be decent monsoons and potential growth prospects in the rural segment. At present the company has a vast sale and product release network with outlets in around 98 areas, and Honda aims to strengthen its sale output to around 162 exists in around 102 areas during the current financial period.

The Amaze has turned out to be a marvelous profit player for Honda with just a simple formula of incredible mileage and reasonable costs, the company might emerge with more game changers with its Rs 800 crores export expenditure.