Honda’s initiative to penetrate the Indian car market will see the launch of its small car by this October. Also in the foray are the sourcing of local components in large number, enhancing the business by pressing more dealers and service wings across the country. The company’s target is to double its sale to more than 1 lakh in the next one year(the current sale is 60000 units). Honda has unleashed its revival measure following the dip in its sale in March and April this year. Last year saw Honda secure a volume of 20% plus in the fiscal. The Q4 of 2009-10 proved to be a haunting phase for Honda – its sales plunged by 3% to a sale of 21764 units which was 22376 units in the corresponding period of last year. Hence its most needed SOS will be a small car for reaching more customers and attaining more sales.
The company’s CEO and President said that the company intends to make its car as the best brand in India so as to reach 1 million customers in the next five years. He foresees the growth by way of launching the small car. The small car is expected to roll on by October 2011 at the price range of Rs3.5-4 lakhs. The company is understood the debacle of Jazz due to the price factor and hence the small car would cost competitively. At the sametime there is no move to strip down the existing model of Jazz [images] because of its high cost, except that there will be a removal of air bags to reduce some substantial price. However, he said, the company will not compromise on safety aspects at the cost of price.