Honda likely to overstep Mahindra and become the third largest car manufacturer

Honda is gaining power; the Japanese based firm looks like it is going to become the third biggest car firm in the country. It is behind only Hyundai and Maruti Suzuki. The company has made admirable profits in the past months post the launch of Amaze in 2013 April. The success value is even higher when the auto market was in a state of turmoil and most other established firms struggled to make profits.

The profit image of Honda was not too visible in the past, although Honda vehicles are covered with a glossy shine. Cost was the hindering factor; there were few buyers for Jazz, the costliest hatch that costs Rs 7 lakhs. To fight over the weak market Honda has used the affordability formula visible in Amaze and all new City.

The auto market has shown signs of revival lately visible in 2014 May where many more firms made profits compared to the previous months. The same trend has spilled over in June. Honda made massive profits in June with a spectacular 75% growth. Its third best auto position in India means it has overtaken Mahindra that has noted 3% loss.  Honda sold 16,316 vehicles while Mahindra sold 16,780 units. The profit yield is sufficient enough to maintain constant revenues said Jnaneswar Sen the senior vice president in marketing and sales division of Honda Cars India.

Honda has received great criticism with the price value of Jazz, and few years ago established a research and development unit. The initiative to set up the unit is to lower manufacture costs. In its new R and D unit Honda has worked on its goal to target local buyers to be on par with Hyundai and Maruti Suzuki.

Honda’s vision to bring down prices has worked wonders; the company has made significant monthly yields post the launch of Amaze. It is a sedan variant of Brio and sub four meter compact sedan. The desirable trait of the car lies in the vast interior room which is magical taking into account it is a compact vehicle from the outside. The car moves on a world class 25.8 kmpl mileage which is the best in its class. Honda has injected robust iDTEC and iVTEC engines engineered with the advanced ‘Earth Dreams technology.’

Honda has taken a risk with Amaze, it is the company’s first venture in diesel segment and it has worked wonders. The firm has used the same diesel formula into its all new City. The car too runs on iDTEC diesel and iVTEC petrol engine, and is incredibly fuel efficient and generates a mileage of 26kmpl. The all new City is the fourth generation model, and an evolution from the past, the specialty lies in all new Exciting H design technology.

Honda has made great profits with two vehicles Amaze and City; the company is all set to thrill the crowd with the launch of Mobilio MPV coming soon on the 23^rd of July. It comes in an all round grand package and a threat to Maruti Suzuki Ertiga and Toyota Innova.