Honda geared to be in top 3

Honda Cars India has made stunning profits in 2014 June with 75% gains, the company has managed to tide over the weak economy with its month long gains post the launch of Amaze mid size sedan in 2013 April. Honda is a step ahead of most established firms that have fallen prey to the harsh recession.

The company has taken risks that have paid off; Amaze is the company’s first diesel venture. It comes in a desirable package filled with world class 25.8kmpl mileage along with robust iDTEC and iVTEC engines. Amaze also comes with vast interior room and comfort. The month long profits has given Honda a whole new rhythm, it is now geared to take the top three position in Indian auto industry, and has the resources to become the third biggest auto manufacturer.

If Honda reaches the third position it will overtake Mahindra, although Honda’s profits are higher than Mahindra’s, it is a hurdle to reach the third spot. Mahindra has sold more vehicles in the month with 16,780 units and Honda gave out 16,316 units in June. Honda has an upcoming threat called Mobilio MPV that could change Mahindra’s profit portfolio. It too is a risk, it is Honda’s first ever MPV project for Indian markets.

Honda is confident of maintaining its profit momentum, and says that it can maintain the level of sustainability.  Honda vehicles are recognized for its unbeatable sheen, power and comfort, the company has not worked up to its potential in the past. The major hindering factor is cost, the dazzling Jazz came with an unbearable price.

To combat its unworthy costs, Honda built a new research and development unit, the goal was to work towards lower costs. The company formatted all possible strategies to achieve this by collaborating with local suppliers and vendors. Honda wanted to draw inspiration from Maruti Suzuki and Hyundai in terms of producing a product that sparkles and valuable.

The instant success of Amaze over the months has enabled Honda to launch the all new City. It is an evolution of the past draped with the cutting-edge ‘Exciting H design’ technology. It is equipped with iDTEC and iVTEC engines, and offers a roaring mileage of 26kmpl. City and Amaze are major contributors towards the 75% gain mark.

Now the main question is whether Honda can easily grab the third spot, it is difficult to tell. Mahindra has competitive forthcoming launches the new Scorpio facelift is an evolutionary car and will come in an all round modern package. The other upcoming products are S101 built on joint collaboration basis with Ssangyong and 2016 Bolero which will also come in a modern avatar. What is even more interesting is Mahindra has already worked out its one model launch strategy till 2014. It certainly knows its level of threat.

Honda’s new Mobilio MPV all set to arrive on the 23^rd of July, is a menace to its competition. It is surely a hard one to beat; the company also plans to re-introduce the Jazz at a valuable price. There are speculations that Honda might launch a refreshed Civic car. It will be interesting to see what happens.