Honda India keen to expand dealership output

Honda has climbed the profit driving ladder in India; it is now the third largest auto firm replacing Mahindra. The company is a pioneer in luxury car market, and its portfolio is filled with elite range of lavish cars. Earlier the brand Honda meant intense luxury, with City, Accord and CR-V. The trend has changed over the past year and half; the company dwelled into a cost-effective approach visible on Amaze and Honda Mobilio.

Amaze was Honda’s first venture into the compact sedan market in India; it was also the company’s debut diesel project in the country. It launched in 2013 April, and portrays a typical family car image, with a chick body and roomy interiors. It runs on a revolutionary 1.5 liter diesel i-DTEC technology and generates a best-in-segment 25.8kmpl mileage and sold at price of Rs 5 to 7.5 lakhs.  It is an instant blockbuster hit, the company recently rolled out its 1,00,000^th Amaze product.

The newest Honda craze is Mobilio MPV; it is the company’s first MPV venture in India. It arrived during the end phase of July and the demand for the car is over the top. In just a month post launch, the company sold 5,530 units in August. In matter of just two months, the booking volumes have touched over 20000 units.

Honda launched the all new City in early 2014 and it too is an instant hit, it is a progression of the current City. The company has styled the car with a novel Exciting-H design technology and is covered with unbeatable luxury glaze. The interior room is vast, and the equipments are advanced, the seats are super comfy with armrests and ample storage amenities. From the time of inception till now, more than 50,000 units of City are booked. The company has stalled the production of the car lately, owing to new factory developments with the creation of a new Tapukara unit. The second shift will commence in November and the desired manufacturing capacity output is 180,000 to 240,000 units.

Honda has confirmed of its plan to strengthen dealership network, it is forced to do so, with so much demand and profits happening rapidly in a short span of time. Honda Cars India has stated of its vision to launch 170 units in 107 cities and increase its dealership outlet figure to 230 units and plans to achieve it in the current fiscal year itself.

Honda Cars India has maintained a firm profit record all through the struggling economy. It emerged victorious when many other esteemed auto firms struggled to cross the desired profit mark. The cost-effective strategy has worked wonders for the firm; the company is keen to bring back its lost luxury sheen with the launch of new Jazz. It will re-surface with superior styling and value, the expected price range is Rs 4.7 to 7.5 lakhs. There is going to be a new Accord launch as well. The new posh Vezel SUV is a massive launch in global market and Honda has not hinted of its arrival in India.

The company has to tackle huge demand from current range of products and make room for new pieces.