Honda is banking on Accord and HR-V to achieve creditable gains in US

Honda aims to enhance its product portfolio segment in US, and is banking on the new HR-V entry level compact crossover car as a part of its sale enhancement strategy. The car was displayed in grand style at the prestigious Los Angeles International Show on the 21^st of November. HR-V is a downsize version of the popular and desirable CR-V.

Honda has made considerable 6% growth in US during the 2014 October period from the corresponding year. The increase in sales comes with improved customer car buying potential that increased by 8% in October. It is the Crossover and SUV segment that has attracted voluminous customer attraction and the preference levels has drifted from reasonable sedans, to now pricy crossover and sport utility vehicles. The fact that the public now have an inclination towards crossovers and SUV’s is a reflection of improved macro-economy engraved on the liberty to freely opt for pricier cars.

The increase in customer spending power was visible during the initial periods of 2014, during the first 10 months, the expenditure power was $334 million, and is expected to go past $400 for the first time in years. The market conditions have improved, but the effect of recession is still pronounced, the overall sale outcome in 2014 is considerably lower than the outcome obtained five years ago, before the onset of Great Depression, and ten years ago the auto economy was booming in the country and the sale outflow of expensive vehicles was impressive.

The past few years is a witness to high impact of industrialization, where merges and outsourcing has become the norm and employees are at times forced to cover a vast distance, customers now eye fuel-efficiency to be a critical part of car purchasing purchase, a highly fuel-efficient car invites lesser maintenance. Gasoline prices have reduced which is a trigger to increased auto sales and reduced fuel costs also triggers low up keep factor. There has been a marked reduction in gasoline prices for the first time since the year 2010, and has gone below the $3 norm.

The lowered gasoline prices have worked in favour of Honda Motors, the company along its established counterpart Fiat Chrysler made admirable 41% gains. The plush and rich CR-V was the highest seller from Honda America; it is a creditable outcome indeed, which echo’s marked progress of auto economy in the country. Honda has been rolling out the car in dozens for the first time in more than two years. In October itself more than 5,100 pieces of CR-V was sold, what is most captivating is the sale outcome is higher than even Civic during the month.

If the buying capacity of American consumers towards crossovers and sport utility vehicles has bolstered up tremendously, then Honda Motors can bank on HR-V for gigantic profits. HR-V is a stiff competitor in its segment, and the optimum selling points of the car is, it is said to have the most efficient and spacious cabin in its segment. It is constructed on an innovative platform with foldable Magic seat on the second compartment and centre fitted fuel tank. Its fierce rivals in this segment are Fiat Jeep Renegade, Ford EcoSport and Nissan Juke crossover.

The company is banking on Accord as well for notable sale numbers, in 2014 September the car generated 26% sales in 2014 August.