Honda plans to strengthen dealership network

Honda Cars India has emerged victorious amidst troubled times, even under the current pressurized economy; the company has managed to generate impressive sales, unlike the trend with many other esteemed firms who have succumbed to the pressure.

Fueled by its creditability in the midst of an economy set back, Honda recently announced its dealership expansion plan. It hopes to achieve a 35% expansion, the firm plans to spread its dealership capacity to 230 units scattered in 150 cities by end of the present financial year, as confirmed by the Senior Vice President in the Sales and Marketing division, Jnasheswar Sen.

The company’s current dealership holding capacity is 195 dealerships in 127 cities. Honda has achieved a phenomenal response from its recently launched Mobilio MPV, it sold in highest numbers during the 2014 September period, and there has been a significant demand for all new City, which is the fourth generation model.

Honda launched the all new City during the early periods of 2014, and it has since then been a best seller. It is not just another new City car, but an evolutionary variant of the past. It is a product of advanced design technology covered with the innovative ‘Exciting H Design’ sculpture. The demand for the car was so enormous, that the company had to stall production to cater to the increased request. The firm built a new factory to accommodate an overload of demanded new Honda City cars.

Even after a month of being missing from the scene, the new Honda City has come back with a bang, and is the second best seller in 2014 September. It’s been barely few months post launch of Mobilio, it is yet a strong market share contributor along with Amaze and City during the April to September 2014 period, with 48% growth. During the period, the company managed to sell a whooping 88,200 units.

Honda made considerable profits in North India with over 27% profits in present fiscal year. The fuel economy statistics have changed, the price margin between petrol and diesel cars has lowered, and the company feels the response for petrol vehicles is increasing.

The customer sentiment value for Honda cars has improved considerably over the past few years. The company has recently engaged in cost-effective strategy visible on Amaze compact sedan, all new City and Mobilio MPV. The brand value of Honda has always been first rate, but the flow of vehicles was not smooth unlike recent times. The favorable customer gathering strategy here is cost-effectiveness and increased localization.

Honda cars are in huge demand; Mobilio, City and Amaze are world class packages filled with immense comfort, style, engine power and value. The company is geared to launch a 2015 Jazz car, at a cost-effective rate; a new Civic car is likely to arrive as well.

Viewing the gigantic demand for Honda cars, it is the main trigger for the company to engage in dealership expansion. Let’s wait for many more exciting and high-value Honda cars.