The Japanese automobile maker is looking to target the SUV market and also working on the future of electric-mobility in India.
Honda recently launched the Civic in India but now the company has bigger plans which includes targeting the rapidly growing SUV market in India. The company wishes to stay away from the small car segment. Honda is still looking to present a competitive show, despite the slowdown in the market. The company states that they have grown more than the market itself but they are looking towards more growth in the future.
The drop in growth which came in last July was higher than expected. Along with a falling Rupee value, rising oil prices, insurance costs and fluctuations in the stock market affected the consumer segment to a great extent. This is still a problem for the company in the current year as well. The January-February 2019 drop in market was about 2-3 percent; with the general elections coming in May 2019, this trend is likely to continue.
Honda says that a change is expected after the elections. However, the upcoming BS6 norms from the 1st April 2020 might also lend a hand to the declining sales. Honda registered a growth of 6.5 percent in the April-February period of the FY19. They expect to sell 17,000 units in March alone. With such numbers continuing, the company expects an 8 percent growth also stating that the coming financial year is full of uncertainties.
Furthermore, the company says that the cost of implementation of the BS6 norms is a hefty number and that is very difficult to bear. These factors are definitely going to hamper the sales. However, the company is looking to sell more numbers in the coming year. Honda is preparing to have a good inventory for BS4 vehicles which will later be updated to BS6 in coming January (Q4) of FY20. They want to take a model on a monthly basis and go about upgrading them.
Coming to the company’s line-up of vehicles, they currently have the Honda Amaze as the entry-level offering, following the Honda City, Honda Civic and the Honda Accord. This completes their sedan line-up. From the SUV point of view, they have the entry-level WR-V which is followed by the BR-V and the CR-V, which is a premium range offering from the Japanese car maker. The are also planning to introduce a new SUV in the market. The Amaze will continue to be Honda’s entry-level offering and they won’t launch any car below that.
Honda says that they want to stay different from the other manufacturers. They plan to give a delightful experience to the consumers, both at showroom and service levels. Honda aims at becoming a premium car maker rather than being a mass producer. The current mass market is ruled by Maruti Suzuki and Hyundai purely in terms of volume.
Discussing about the future of electric-mobility in the country, Honda says that they are currently working on hybrid vehicles with fully electric vehicles slated to come within the next three years. A fully-electric future would still take time as it requires a lot of infrastructure from the charging and price point of view. Honda is working on factors like vehicle range and battery capacity.
With the government’s FAME II scheme under implementation, the car maker will focus on reducing the overall costs. However, it will only be possible if the government works in a positive direction providing the necessary infrastructure for the future electric vehicles. Honda says that the hybrids will currently take the stage as they would not require any extra infrastructure.
Upcoming Honda Cars
– Honda won’t launch any car below the Amaze
– Additionally they are looking to introduce a new SUV
– The car maker is planning to delve into hybrids
Source – ETAuto.com