After a year, full of drama and intrigue, car maker Honda Cars India appears to have started 2017 in style with the launch of several car models. The car maker has faced numerous issues such as slow moving sales and a diesel stock buildup signaling dangerous time for the global car making company.
The company’s head of marketing, Jnaneswar Sen commented, “Last year we had some internal issues like high stock, excess diesel vehicle stock but we have corrected that and the upgrades are also in place. We turned the corner last month, and we should do well this year.”
In the last two months, the industrious car maker has introduced two new car models to the market, the WR-V and City. The pre-existing model Mobilio that has experiencing slow sales has been stopped to provide room for newer models that might do better. Sen stated, “We have temporarily stopped production of the Mobilio and cleaned out the existing stock as well.”
The new Honda models have been gaining some traction in the market, with the WR-V receiving 3000 bookings in less than a week, and the new City model getting 15000 bookings in less than a month. This is an indicator of interest on what the Indian car maker has brought to the market.
Honda seems to be responding to customer demand and offering something that is not in the market. Speaking about the successful start of the WR-V debut, Sen remarked, “The body shape is different, and we are targeting a younger more active consumer with this product. We are getting customers from both compact SUV as well as premium hatchback segments.”
The Honda WR-V may be exported to other countries, including Brazil. While speaking to reporters, Sen said, “Already, we are exporting few of our existing models to neighboring countries. This product (WR-V) may be exported to Brazil.”
Honda also plans to expand its footprint in the country, increasing dealership outlets to 370 from the current 336 in Tier II and III cities from 2017-2018. In the midst of all this, other vehicles by Honda would be revised and increased by up to Rs 10000. However, the WR-V’s price will remain unchanged. While responding to the change in prices, Sen further stated, “Due to the increase in freight charges and input costs, we are forced to consider increasing the car prices for most of our models. The increased price will be effective from the first week of April 2017.”
Honda is not alone in hiking prices, as several car companies have had to do the same. Toyota increased prices by 3% for some of its models from the first day of the New Year. Tata Motors and Maruti Suzuki India Limited has also had to raise prices for some of its models. Some of the reasons that have been fronted for the price hike include changes in commodity prices and adverse foreign currency movements that have increased the costs of doing business in India.
