Honda’s effectual product planning in India enables it to sustain the wavering economy

Honda Cars India made impressive 18% gains in 2014 October, it managed to sell 13,242 units in domestic segment, significantly higher to 11,214 pieces rolled out in the corresponding year. The firm sustained the grave economic pressure all through the months of 2014, the sale outcome of the present financial year is over 1 lakh, and during the April to October 2014 period, the company sold 1,01,442 units much higher than 70,831 volumes sold a year ago.

Honda feels that it is the significant customer response that has resulted in admirable sale outcomes. The company in a statement stated that the team was efficient in rolling out considerable number of products, and also spoke of its plan to build a new factory in Tapukara, to commence on the second shift of auto operations, to cater to the gigantic demand for the all new City. The export volume yielded during the month is 357 units.

The all new City is the highest seller in 2014 October, with the sale of 5,120 units; the second best seller is Amaze with the flow of 3,482 pieces, next in line is Mobilio with 2,985 units and 1,584 units of Brio. Honda made a complete profit turnover during the 2013-14 fiscal, after a depressed period of five years that witnessed tremendous losses. It was a huge transformation, and the amount of losses decreased by a vast 57% contributed by astral successes, Mobilio, all new City and Amaze. The reduction in loss value was steep, from Rs 1109 crore to 479 crore.

The company adopted the intense localisation strategy on Amaze, Brio, Mobilio and City, and the models were developed with a viewpoint of catering to the needs and aspirations of Indian demographic. Honda’s first diesel engine project for the Indian market was in 2013 April incorporated into the Amaze, that resulted in growth progression curve of 43% in 2014 and in 2013 it was 83%, and the company hopes to maintain the commendable growth continuation trend, and feels that the pattern is dependent on exterior market conditions such as currency rate fluctuation, competition and market demand.

The macro-economic scenario in India is wavering, and companies have to effectively plan their future product launches. Honda is keen to achieve creditable profits in fiscal 15 and with a determination to achieve it, the company has chalked out its future product planning strategy with a couple of utility vehicles and range of diesel vehicles for the coming three years, and is working on acquiring the fastest growing segment brand tag in India. The company is also developing a compact sport utility vehicle adopted from Brio platform and multi- purpose vehicle.

Honda accredits India to be a key profit player for global growth, as the number of product launches expand, the unitary price of each product reduces. The parent unit of the company is in Japan and the country has withstood natural disasters and also a rising yen currency, it has affected effectual business prospects. The evidence of India being a robust profit generating unit is reflected on the gigantic 3800 crore that was invested in manufacture the Tapukara unit and the factory will have a vast segment of localization machinery and power train components to built hefty profit volumes.