Honda Siel has at last found the track for its growth through the launch of small cars. The company aims to double its growth with this small car during 2011-12. India has become the second fastest growing market and Honda eyes on reaching the one million customers in another five years. For this, localizing the components will be the key factor, as disclosed by the new CEO of the company. Investment of Rs784crore has been allocated for expansion of powertrain at Tapukara in addition to a frame assembly unit and expansion of R&D.
He said Honda aims to set a trend of being a household name in the Indian market in another five years. To meet this target the company is making aggressive proposals for customers of tier I and II he added. The concept of large localization is mooted to reduce the price and lessen the negative impact of currency value. Currently the cost of the vehicles is higher due to import from Japan and the value defect of yen. The company has 124 suppliers of which 52are domestic amidst which it faces the tough task with the pricing.
Honda believes that the global market is welcoming the small cars for the fuel efficiency and low emissions and hence it needs more localization. Honda’s small car had its display at the Delhi Auto Expo and to be launched in the end of 2011. Honda is currently a premium car maker and in India the company has 4 lakh customers dealt by 117 dealers which may be increased to 150 in the next year. Honda makes City [images], Jazz [images] and Accord [images] from its Greater Noida and CR-suv is an imported one.
Once Honda gets entry into the crowded small car segment it would be priced competitively in A2 category. This category is getting the arrival of VW Polo [images], Ford Figo [images], Chevrolet Beat [images] and the one from Nissan (Micra) [images] along with Toyota Etios [images]. The small car segment in India has the play of Maruti Alto [http://vicky.in/gallery/cars/maruti/alto/], Tata Indica Vista [images] and Hyundai i10 [images] and i20 [images].