In the financial year 2016-17, Honda India has achieved the total sale of 5 million units in a single year. To withstand and achieve more than the previous year record, Honda India has announced its Mid-Term future business roadmap for 2017-18.
In his first public speech since assuming new role as the President & CEO of Honda Motorcycle & Scooter India Pvt. Ltd., Mr. Minoru Kato announced the biggest strategy shift in Honda’s business direction and said,
“In 2016, Honda 2Wheelers India became the Number One contributor to Honda’s global two-wheeler business. Today, the Indian market is on the cusp of its biggest ever paradigm shift. The BS-VI norms which are set to become enforceable by 2020 will make India quality match World’s most stringent quality standards. Honda’s vision is to build exponentially on our solid foundation and ‘to become a company that not only Indian but also Asian society and customers expect to exist. Our new business direction is to be leading in India and the World.”
As part of Honda’s future preparedness, the focus on “Quality” will be through three themes:
- Drive future business from the Honda’s 30 million Wing riders customer base in India
With replacement period of two-wheelers coming down to 5 – 7 years, Honda’s existing customer base of 30 million valued customers will drive new opportunities fo growth. Hence, Honda will innovate with new ways of engaging and delighting customers starting from the ground i.e network.
- New organization structure to manage seamless transition into BS-VI era
The BS VI emission norms by 2020 will bring in a host of advanced technology like PGM-FI fuel injection and on-board diagnostics.Leading the technology curve in India and recognizing the need for advance planning, Honda 2Wheelers today announced that it has set up a high-level BS-VI task-force. This task force is ‘cross-functional’ from Sales, Engineering, R&D, Purchase and Quality and is working on the primary objective of strengthening the quality, product planning with cost competitiveness.
- Enhance Honda technology leadership
Globally, Honda is synonymous with advanced technology and owns over 5,000 invented patents which are more than any two-wheeler maker in the world. Out of this already 400 patents are registered in India. Understanding that technology will be a key differentiator in near future as well as BS VI emission norms implementation, Honda is now strengthening its Intellectual Property Rights in India with specialized IPR experts assigned to India for the first time.
This team shall be working to protect and enhance Honda technology for its new product introduction in India. Most recently, Honda has already applied for a patent on “Low Rolling Resistance Tyres”. This technology has already been launched in our 2 motorcycle models – Livo and CB Shine SP. 2017-18: The year that sets the foundation for future growth
Elaborating how Mr. Kato’s vision and business direction is translating into challenging targets for FY’2017-18, Mr. Yadvinder Singh Guleria, Senior Vice President – Sales & Marketing, Honda Motorcycle & Scooter India Pvt. Ltd. said, “Despite challenging second half of FY’17, Honda 2Wheelers India has grown more than double the growth of the industry. Fastest ever scale up to 5 million unit annual sale in the history of Indian two-wheeler industry has given us a strong foundation for challenging our next big leap to 6.0 million.
On the product front, we had a smooth transition to BSIV for all our models. Activa continues to lead the industry as the highest selling two wheeler. In the 125cc segment, Honda CB Shine is leading the pack. Our new models like Livo, CB Shine SP & CB Hornet are doing well in their respective segments.With over 50,000 customer base in the first year, NAVI is spearheading the customization culture & has created a new FUN segment. With additional capacity, new models introduction, aggressive network expansion®ional strategic promotion, Honda is all set for carrying on its sales momentum in Fy’18 as well.
With expected normal monsoons as per IMD forecast, a good realization of Rabi crop &backing of center & respective state governments to the rural economy, rural buying sentiments are expected to drive demand. Rapid scooterization of the Indian 2Wheeler market will be like a tailwind for the realization of Honda’s next year plan.”
Source: Honda Motorcycle & Scooter India Pvt. Ltd