Honda will expand its dealership network in Tier 3 cities

Honda Cars India is keen to expand its dealership unit in the country, at present the company has 163 dealerships across 102 cities in India. The company now aims to strengthen its network to 230 dealerships in 150 cities. Honda plans to achieve the proposed target by 2015 March in 3 tier cities and the dealership output will increase to about 65%.

Honda has recently launched the new City model and is a killer launched and an evolutionary product of the previous model. The company hopes to achieve 58% overall sale output from tier 3 and tier 2 cities. The City is sold with diesel and petrol fuels. The City diesel is fitted with potent iDTEC 1.5 liter engine, and the mileage rendered is best-in-class at 26kmpl, attached to six speed manual transmission gearbox. The engine pumps out efficient energy outputs of 100PS pea power and 200Nm peak torque.

The petrol City is inserted with powerful iVTEC 1.5 liter engine that churns 145Nm peak torque and 119 PS highest power. The engine is mated to five speed manual or continuously variable transmission gearbox. The car moves with an impressive mileage of 17.8 kmpl with manual transmission gearbox and the CVT gearbox gives 18kmpl.

Honda has recorded amazing profits in the past year, the launch of Amaze in 2013 April has set a series of profit sparks. The car is a sedan version of Brio, and the standout features are world class mileage rendered by the diesel car which is 25.8kmpl, and the petrol car gives around 18kmpl. The iDTEC and iVTEC are novel engines used in diesel and petrol model. The two power trains are built with advanced technologies and the energy output is enormous. The interior room of Amaze is luxuriously spacious for a sub four meter sedan and the boot volume is 400 liters which is abundant in its class.

The past few years have not been favorable for auto makers in the country, for Honda it is the opposite. The company has recorded significant profits and the major profit player is Amaze. It has been barely a year since the launch of the car and already over 80,000 pieces of the car is sold. To cater to the enormous demand of the car, Honda had to build another unit in Rajasthan, the waiting period was prolonged and the company had to tackle between the surplus demand and supply.

The new City is injected with iDTEC and iVTEC engines used in Amaze, and the crowd response for the car is overwhelming, just like how it was for Amaze. Honda is experiencing a peak demand spree and now aims to expand its showroom capacity which was already massive. Honda dealership capacity will increase by 67 fold and its acreage capacity will strengthen by 48 units. The pre-booking figure for City which commenced in December has touched milestone figures of 10,000.

The new City has the attributes to be a game changer for the company and so are the models that follow which are Honda Vezel SUV and Mobilio MPV. It will be interesting to witness the profit stature of Honda Cars India post the launch of mentioned upcoming models.