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.”
Source Name : www.zigwheels.com