Honda Outlines Plans For FY 2018-19

April 11 2018

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Plans for next year involve one new launch and 18 new model updates

Honda plans to launch a new model and upgrade its existing lineup in India.  This is disappointing when compared to the last financial year’s  performance, where the Japanese bikemaker launched four new models, the Cliq, Grazia, X-Blade and the Africa Twin.  Nevertheless, it allows the brand to concentrate on updating their  existing lineup of 25 two-wheelers. While most of the updates are  expected to be merely cosmetic, Honda will be focussing its energies  towards getting its portfolio ready for the BS-IV emission norms that  will come into effect from April 2020. All of this will attract an  investment of close to Rs 800 crores, a substantial part of which will  go towards increasing dealer touch points by around 6000. The main  objective here is to double their fiscal growth that stood at 22 percent  for the last financial year.

To sum it up, Honda has three goals for this financial year:
1) Increase dealership count by 6000.
2) Be prepared for the next BS-IV update.
3) Modernisation of its existing production capacity.

With Honda’s plans for FY18-19  announced, we believe it makes more sense for the company to bring in a  CBU offering than invest time and money on developing a new low capacity  scooter or motorcycle. Going by that logic, Honda might get the new  CB1000 to India.

Read the press release below:

Honda 2Wheelers India announces Plan for FY’2018-19 with an eye on 2020

Honda pulls the throttle in the Fiscal year 2018-19

-Earmarks close to Rs. 800 crore investment outlay for FY’2018-19
-After 22% growth last year, Honda guns for third year of Double digit growth
-Customers can expect 1 BRAND NEW model and 18 exciting upgrades this year
-Honda to expand network reach to 6,000 touchpoints by FY’2018-19 end
-Honda Joy Club - a unique customer loyalty program to be launched this year

Eyeing 2020, Honda starts strategic consolidation

-BS-VI preparations in full swing
-Vision to Lead in India and the World with QUALITY and QUANTITY
-Starts modernization & unification of production constitution across plants
-NEW Brand and Communications Operation announced to propel Brand Power in India

New Delhi, April 10, 2018: After creating a new world record* by  becoming the only company in India and the world to add 1 million  incremental sales in one year, Honda Motorcycle & Scooter India Pvt.  Ltd. (HMSI) today announced its plans for the Indian market for  FY’18-19.
In line with Honda’s business direction to Lead in India  and the World with Quantity and Quality, Mr. Minoru Kato -President and  CEO, Honda Motorcycle and Scooter India Pvt. Ltd. said,

“India is already the Number One contributor to Honda’s global  two-wheeler business. Our record sales have set a solid foundation in  2017-18 and Honda 2wheelers India will further consolidate its position  in 2018-19 as we get ready to lead the biggest paradigm shift of 2020.  Moving ahead with the same momentum on back of customer demand, we will  invest close to Rs. 800 crore as we aim for double digit growth for the  third consecutive year in a row as well.”

Honda 2Wheelers India will pack a lot of excitement in FY’2018-19

-On the pipeline from Honda during this fiscal are be one brand new model and 18 exciting upgrades of existing products.
-Network  expansion will be the next step from making for India to delivering to  India. Honda 2Wheelers India will further expand its reach to 6,000  touchpoints with key focus on hinterlands.
-Honda Best Deal network –  the industry’s first pre-owned two-wheeler business by any manufacturer  will expand to close at 250 touchpoints this year.
-With  replacement period of two-wheelers coming down from 5-7 years to 3-5  years, Honda’s existing customer base of 36 million valued customers  will drive new opportunities of growth. Aiming to lead in customer  satisfaction, Honda will introduce Honda Joy Club – a unique customer  loyalty program in 2018 itself.

Strategic consolidation starts for 2020

Honda is working on its vision of Leading in India and the World with QUANTITY and QUALITY in below areas:

BS-VI taskforce leads Honda’s migration to world standards:
As  part of future preparedness before the big jump to new BSVI norms in  2020, Honda’s cross-functional BS-VI task-force from Sales, Engineering,  R&D, Purchase and Quality is proactively working on the primary  objective of strengthening quality, product planning with cost  competitiveness.

Internally, Honda has initiated the modernisation and unification of  production constitution across all plants. This move will help Honda  reap the benefit of higher productivity with efficiency and match  product quality to world standards. Externally, Honda has pro-actively  announced its BS-VI roadmap with its suppliers to ensure a smooth and  timely product portfolio upgradation.

New Organization to push Brand Power to next level:

To further differentiate brand Honda and strengthen its power among  all stakeholders, Honda 2Wheelers India has created a new Brand and  Communication operation. The new operation’s mandate includes Road  safety promotion & Racing DNA of Honda through Motorsports - the two  core pillars of Honda brand globally. Driving the communication of  brand with all stakeholders will be the new Corporate Communications  division.

Overview of 2017-18 – Honda’s most defining year in India

Elaborating on Honda’s performance in 2017-18, Mr. Yadvinder Singh  Guleria, Senior Vice President – Sales & Marketing, Honda Motorcycle  & Scooter India Pvt. Ltd. said, “2017-18 was a historic year for  Honda in more than one way. Honda 2Wheelers India is the only  two-wheeler company in the world to grow at a pace witnessed never  before, adding 1 million plus incremental customers in a single year.  Led by strong demand in both domestic and exports front, Honda’s sales  apexed at 6,123,886 units with 22% growth. Honda successfully  consolidated leadership further in scooter segment while aggressively  gaining new motorcycle customers. The aggressive launch of 4 brand new  models, new capacity infusion and addition of 500 new outlets propelled  Honda’s growth story further and set the solid foundation for future  growth.”

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