Honda keen to set up retail joints in India

Honda India along with the established retail firm in Sweden called Hennes and Mauritz have applied for approval from Indian Government to establish retail outlets in India. Honda Motor India, the Indian subsidiary of the parent Japanese firm has sought permission from the board of Foreign Investment Promotion to roll out items such as accessories, spare components and two wheeled vehicles. Some spare parts are also on sale through various franchises. The Swedish firm Hennes and Mauritz has requested an estimated proposal of Rs 700 crore to open around 50 outlets.

On a global scale, the popular Swedish firm has 2,800 outlets that span a vast area of 49 stores. The employment figure is supreme as well with more than one lakh employees. Germany is known to the largest retail market, followed by US and then UK. Hennes and Mauritz was first established long ago in 1947, the company has since then strengthened its portfolio with amazing range of brands that include Monki, Weekday, Cheap Monday, COS and so on. There was a relaxation on Foreign Direct Investment (FDI) policies imposed by the Government last year, which has led to a string of significant foreign investments. The popular retail outlet IKEA has contributed a massive amount of Rs 10500 crore to establish a range of retails segments in India which is the company’s main goal at present.

The aim of Honda India to establish retail outlets in India is a good move which could strengthen its car sale outputs with the range of stunning accessories that can be inserted in its powerful range of cars in India. The set up of retail outlets by Honda in India, might transform into cars with eye catchy interiors never seen before. This is an interesting move of the company along with the eminent Swedish firm to set up a herd of outlets.

Honda cars have been among the best sellers in the car industry in India, the Civic and Brio are among the most popular models. The Brio is designed to cater to the young feminine demographic, and Civic is designed for the ardent sporty crowd. The company has recently launched the Amaze, which is a sedan version of the trendy Brio hatchback. The diesel version of the Honda Amaze is known to possess supreme fuel efficiency of 25.8 kilometer per liter. The Amaze has cut-throat competition with one of the best sellers of Maruti Suzuki called Swift Dzire. With the range of incredible cars with powerful efficiencies, the establishment of retail stores could heighten the car image of Honda, the interiors might be decorated with colorful and vibrant upholstery, or there could be sale of beneficial car components such as tires and so on.

The company is still awaiting permission from Indian Government to set up stores in India, let’s hope the Indian Government sanctions this approval, and there could be a massive line up of Honda retail stores, which could be extremely beneficial during car service, and let’s hope some attractive insurance and warranty benefits are introduced. The construction of retail stores might enhance the overall profit turnover of the company.