Honda India hopes to record 50% profit volumes in North East in 2014-15

Honda Cars India is keen to expand its product range portfolio in regions of North East India. The company hopes to achieve 50% sale growth in the region during the 2014 to 2015 period.  The demand for petrol fuelled vehicles has increased in North East India, which makes the company optimistic of its projected goal.

A company representative said, ‘’the growth potential of Honda Cars in North East India is promising, and are positive about the attainment of the ambitious 50% growth target.’’ During the 2013-2014 period, North East recorded a growth hike of 38% with the sale of 1,733 units. The company is keen to enhance its growth outcomes through the plan to launch new models and expand dealership capacity.

Honda has won significant acclaim throughout the country with its Amaze and all new City cars. The demand for the cars in North East region is pretty robust, and the consumer preference levels are drifted more towards petrol vehicles than diesel. It is a vast variation difference between the demand for petrol and diesel vehicle, out of the total profits made, about 60% of it is churned from petrol cars.  The area of North-East added 8% of overall profit volumes for Honda Cars India and contributed 2% overall sales.

The presence of Honda Cars India in North East India is strong with wide dealership networks in Sikkim, Nagaland and Assam. The company is now working on opening dealership units in Itanagar city of Arunachal Pradesh and Imphal region of Manipur.

Honda Cars India has managed to capture enormous sale potential in India, even under the current pressurized economy scenario; it is a creditable outcome while many other esteemed firms are struggling to cross the desired profit mark. It is the Amaze compact sedan and new Honda City that has enabled the company to make impressive profits.

Amaze is Honda’s first diesel project for Indian markets, the car launched in 2013 April and has since then been an astral success. The plan of Honda to incorporate its first diesel engine project into Amaze, may have appeared to be a grave risk, and the outcome has been nothing but magical. The robust 1.5 liter iDTEC engine fitted into the car generates best in segment mileage of 25.8kmpl, which is the main selling factor of Amaze, apart from supreme inner comfort and trendy architecture.

Viewing the success of Amaze, Honda has fitted the i-DTEC engine formula into its all new City car that launched in early 2014. The vehicle runs on a class performing mileage of 26kmpl, and is also a best seller along with Amaze. The all new City is an evolutionary variant of the past, covered with an all new Exciting H design technology design.

A recent new hit of Honda is Mobilio MPV, and it is among the high sale contributors during the 2014 October period with the sale of 2,985 units, the highest contributor during the period is City with 5,120 units and next in line is Amaze with 3,482 units. The company recorded an 18% sale growth.

Honda has strategized its product range effectively with Amaze, City and Mobilio, there is also a new cost-effective Jazz in the making, and the current admirable and efficient product range will enable the company to yield favourable gains in North East.