Honda moving into mass market dominated by Maruti Suzuki, Hyundai with new models

Japanese car maker Honda which has tasted success in Indian markets with its Brio and Amaze models is planning to go after existing market leaders Maruti Suzuki and Hyundai. Most international entrants into India’s automobile market were concentrating on niche SUV and sedan categories while mass market models below seven lakhs still constitute highest among total quantities of cars sold every year.

According to a recent press statement of senior VP sales from Honda, plans are underway to have sales teams divided according to product categories and also expanding network of dealers and service stations to have better reach across the nation. In current scenario Honda constitutes only 5% of Indian passenger car market but has ambitious plans to expand to 10 percent by 2015. This will be carried out by bringing in new models across various categories ranging from mini and compact hatchbacks to entry level sedans and utility vehicles.

Honda realizes that compact car segment in India is quite crowded with local and international players all vying for a piece of India’s large customer base of nearly 1.2 billion of which more than half are of income generating age group. Therefore Honda has developed a conceivable target and has a multipronged tactic to achieve the same with active support of its sales and marketing team. The battle for mass market cars in India is therefore becoming a three member affair with oldest player Maruti Suzuki retaining its leadership and Hyundai trying to be a close second with Honda entering the fray with a retinue of new cars.

The cars to be launched by Honda are in various categories ranging from hatchbacks, sedan and compact SUV’s which will be followed by luxury hybrid cars which have gained popularity overseas. Honda will start its foray in the new year of 2014 with launch of Honda City in January to be followed by Mobilio in May-April and ending with new Jazz. In the following years too Honda will continuously launch three to four cars every year targeted at popular brands to create a flutter and create curiosity around the brand.

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