Honda foresees India to contribute 20% profits in Asia – Oceania segment

The Amaze is Honda’s first diesel project, and the company’s debut formula has worked wonders. This is a sedan version of Brio, and the attention grabbing features of Amaze are its enormous 400 liter boot volume and best-in-class 25.8kmpl diesel mileage. The pounding fortunes recorded by Honda with the Amaze, has startled the parent headquartered firm. Honda Motor Corporation is of the view that India is a strong player in terms of overall sale output in Asia Oceania segment in present financial year and expects to witness a 20% sale volume figure.

Honda Cars India Limited, a fully owned unit of Honda Motor Corp, aims to acquire 25 percent of the overall 12 lakh pieces, rolled out by the parent firm during the end period of 2016 to 2017 financial year. Jnaneswar Sen, the Senior Vice President in Sales and Marketing division of Honda Cars India stated, ‘’our goal is to release six lakh pieces in Asia-Oceana region in present 2013 to 2014 fiscal year. We hope for India to contribute 20%.’’

Honda Cars India rolled out 73,000 pieces of its vehicles in Indian markets, during the 2012 to 2013 financial year. Honda Motor Corp at present sells 5 vehicles for Indian markets and expects India to strengthen its sale output to about 25 percent in end of 2016 to 2017 financial year. By then the company is keen to roll out 12 lakh piees in Asia Oceania segment.

Amaze is a sale backbone for the company and has elevated Honda’s profit resume to new heights. The company’s impressive 88 and 36 percent sale increase is mostly contributed by Amaze, and for the April to October financial year, 70,831 volumes of the car was sold compared to 43,525 pieces sold in the corresponding year.

Yoshiyuki Matsumoto, the Managing Officer, in the Purchasing and Production and representative of development of Asia and Oceania coined the twelve lakh volume sales as a challenging and commendable moment, and also highlighted the fact, that this region is a robust segment for favorable business prospects.

The Asian and Oceania continent is filled with a significantly bigger population, strong buying power and admirable GDP growth curves. This has led to a series of positives, and hence a major growth graph during the last ten years. The countries that fall in the Asia-Oceania category are Australia, Thailand, Malaysia, and India, Japan and China do not fall into this portfolio.

Recession has however hit India harder than before, during the past few months, and the economy is currently showing signs of recovery. Even with the harsh macro-economic impact, Honda Cars India Limited shelled out major Rs 2,500 crore investments. With this revenue the company is keen to set up an assembly unit which comprises of forging plant and diesel plant at its reputed Tapukara Rajasthan unit.

Honda Motor Co in the last fiscal sold around 30 lakh vehicles for overseas markets, and now it is keen to record double blockbuster sales by 2017 March. Honda Cars India has done well for itself with the launch of Amaze, and Honda fans in the country can rejoice with some more exciting models, one of them is next gen City unveiled today, Honda urban SUV and Mobilio MPV. All these put together might be game changers for the company.