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Honda revises target to 2016 to become No. 1

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  • Honda revises target to 2016 to become No. 1

    During the unveiling of the CB Trigger, Honda declared that in the current market scenario, the company will be No 1 by 2016.

    The current market slowdown is hitting Hero Moto Corp drastically, while Honda Motorcycles and Scooters has been growing in marketshare continuously. Honda believes that if this slowdown continues then they could be the market leaders by 2015-16. This claim of Honda is made with such confidence and aggression in intent, that Hero will have to sit up and take notice.

    From the looks of things, Honda will continue new launches, with minutely differentiated products. This will keep market interest and keep Honda in the news. Along with this, the company is also continuously expanding across the country, be in the form of dealers, SVCs or any other touch point. Guleria, VP, Sales & Marketing, claimed that one touch point is being inaugurated every day in the country.

    According to SIAM figures, since April 2012 to February 2013, the sales of the top three companies stood at Hero - 54.61 lakh, Honda at 23.67 lakh and Bajaj at 22.82 lakh units. Honda has got a lot of catching up to do with respect to Hero, but with the new plant being productive within three months, Honda hopes to remove the backlog of orders it currently has, which is hovering around 70k.

    Ironically though, Honda considers Bajaj a bigger rival than Hero, since the technology partnership with Hero will last till 2014 only. But Bajaj has been constantly developing and launching motorcycles in the Indian market. But both the companies have not yet launched an all out attack on the bread and butter 100cc segment, that is still very much Hero's domain. Maybe, in the coming quarters, Honda might launch more motorcycles in the commuter segment.

    Shinji Aoyama, General Manager, Motorcycle Operations, Honda -

    "You will witness actually HMSI is gaining market share while Hero is losing the market share. The trend will continue,"
    "In terms of numbers, still Hero is number one but very frankly speaking, the consolidated power, including R&D, sales network there, including many of these elements, I think Bajaj is very strong. Bajaj is very good at creating alliance..."

    Source: HMSI can be No 1 two-wheeler maker by 2015-16 if slowdown continues: Honda Motor - The Economic Times

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    • #3
      The pressure is actually on EBR right now. With a company that is basically limited to producing 800cc+ race spec bikes, im just wondering how they're going to maintain the reliability those 100-150cc engines Hero have today.
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      • #4
        i wonder, when we will be able to see a hero bike designed by EBR...??
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        • #5
          Its such a funny market that a good clock might not ring a bell, and a good camera won't click, "the common consumer". For Honda, its not going to be that easy. Strangely, the big strengths of Hero & Bajaj are firstly, both being of Indian origin and secondly, decades-old presence in India.


          Among other factors, they need to focus on two important factors: Price, products/ spares availability. CBR 150R still costs around 1.3-1.4L I guess.

          And strange to hear that they fear Bajaj more. Maybe they're looking from the long term perspective. They mentioned the words "R&D, sales network" and most importantly "Alliance". And they're right.

          Atleast in the performance segment, if anyone seriously stands in their way, its Bajaj & its three aids, KKH.
          These three companies have a successful product in every variety of sports bike ever produced:- Sports, Urban, Stunting, touring, off roading, commuting, Supermoto, precisely everything... And to some extent, Yamaha too is a bit of a threat to Honda in this segment.
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          • #6
            Honda thinks they can double their sale figures with in 3 years...???? and in those 3 years rest of the companies like hero, Bajaj and Yamaha will do nothing...???? Firstly Honda should save their scooter market which is their bread and butter as hero, Suzuki, Mahindra, Yamaha and tvs has started eating up into their share. infact Yamaha, vespa and tvs are coming up with new scooters soon. As far as their bikes are concerned they havn't launched some thing ground breaking in any segment apart from cbr 250. Why customers will move from their tried and tested products like splendour, discover, pulsar, fz, r15, passion etc...??? people will shift focus towards Honda only if they will start giving them something new and better in terms of design, engineering and quality but they are continuously trying to inject life into their dead brands which have been rejected by indian public long time back. Why would one will look forward to buy cb trigger or unicorn or cbr 150...????...... Ans 1> trigger for CBS..... ans 2> unicorn for its age old design which still retails around only 2000rs/- less than much more capable hero hunk which comes fully loaded...... ans 3> cbr 150 for its hefty price tag or for the lack of basic features like engine kill switch.....come-on Honda...firstly learn to deliver and price your products properly and bring something fresh and catchy, only then expect a bump in your sales...
            Last edited by Naveen1985; 03-13-2013, 01:49 AM.
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            • #7
              Given the current market scenario, I think Honda has to be very cautious with regards to theirs expansion plans. Sales figure of major automobile maker has been falling.

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              • #8
                Honda(2 wheeler) is becoming too optimistic after beating Bajaj in sales figure & occupying the second spot in India..but they still didn't even sell half as sale as Hero did in a year!!

                sales figures of top three companies : April 2012 - Feb 2013
                HMC - 54.61lac bikes
                Honda - 23.67lac bikes
                Bajaj - 22.82lac bikes

                Honda should not forget that its cuz of its scooters they are achieving this sales figures but in recent times they have seen a dip in sales of their hot selling scooters..& Hero had seen a growth in that segment after introduction of Maestro!!
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                • #9
                  Honda kicks into top gear

                  Source : Hindu Business Line

                  India will play a much bigger global role for the company once free trade agreements are in place with the ASEAN region.




                  That is Aoyama for you in telling it like it is. It is no secret that Honda is targeting market leadership here by 2020. Can this be achieved four years earlier, though? Yes, so long as the market witnesses flat growth over the next three years, a point which Aoyama stressed during his recent India visit. This scenario, though, is extremely unlikely as two-wheeler makers are confident of posting 7-8 per cent growth even though the market looks sluggish right now.
                  TAKING ON THE KILLER BRANDS

                  Honda is, of course, going all out to increase capacity in India. Within a year, it hopes to clock four million units annually from its three plants in Haryana, Rajasthan and Karnataka. By then, it will have finalised its choice of location for yet another facility which is tipped to be a toss-up between Gujarat and Maharashtra. Once the Western region is covered, the Japanese automaker could even be inclined to set up a plant in the East. The eventual goal is to touch 10 million units by 2020, though this could be achieved even earlier.

                  The company will also have reason to feel confident because it is quickly making a mark in motorcycles while continuing to be the monarch in the gearless scooter space. Aoyama singled out Bajaj Auto for special praise, indicating that it was a force to reckon with in the two-wheeler arena, even ahead of Hero MotoCorp.

                  Both rivals have an aggressive product line-up for a rapidly changing customer base seeking the best in technology and mileage. Their eventual buying decisions will play a big role in paving the way for new market dynamics in the coming years.
                  SCRIPT FOR ASIA



                  The Dream Yuga, to that extent, is only the beginning of an exciting script where Aoyama, with his knowledge of India, will pull out all stops to take the company ahead. This strategy could, perhaps, converge with a larger global script focusing on Asia and South America. For instance, going by what Ito said, Indonesia and Vietnam will see Honda offering an attractive product line-up, including scooter models.

                  Observers believe that India will get into the picture aggressively once FTAs are in place because the capacities created here will result in economies of scale for a larger global play. Beyond ASEAN and Latin America, this could also include Africa, a market which Japanese counterpart, Yamaha, is planning to service aggressively from its India operations.
                  CAR BUSINESS


                  As in motorcycles, Honda will strive to keep costs in check for cars by focusing on concurrent product development. As Ito said, each of its six key regions will participate in this exercise from the early stage of development which will eventually see cost of sourcing parts significantly reduced with the largest volumes emerging from the most competitive region. India, along with Thailand, Indonesia and Malaysia, will leverage the Brio platform to produce sedans and SUVs. Likewise, it will be a nucleus nation for the new diesel engine where sourcing of parts globally will keep costs in check. Honda hopes that by 2017, automobile sales in emerging markets will double to over three million units.
                  --------------------------------------------------------------------------------------------------------------------------------------------

                  Aoyama praises Bajaj and its capabilities far ahead of the competition. Its very rare we see someone from Honda praising their competitors. Rajeev might be happy reading that line.

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                  • #10
                    Originally posted by s_hari View Post
                    Source : Hindu Business Line

                    India will play a much bigger global role for the company once free trade agreements are in place with the ASEAN region.


                    ...................................
                    --------------------------------------------------------------------------------------------------------------------------------------------

                    Aoyama praises Bajaj and its capabilities far ahead of the competition. Its very rare we see someone from Honda praising their competitors. Rajeev might be happy reading that line.
                    Similar news approved and merged
                    Biking is not about what you have between your legs, its all about how well you use it!!!!!!!

                    Give your details here if you want to help your fellow xBhpian stranded in your city

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                    • #11
                      Whatever technology prowess of Honda be, if they fail to address the complaints about the rogue dealers and non-availability of spares for DIY vehicle owners and non ASC workshops it will not be easy

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                      • #12
                        Honda's 5 pronged strategy to be No. 1.

                        - World Class localized R&D
                        - Increasing touchpoints
                        - New launch every quarter
                        - Using Bollywood Brand Ambassador to connect with the masses
                        - May set up assembly unit to make high end bikes cheaper instead of CBUs

                        Source: Honda's 5 mantras to win in India - Honda's 5 mantras to win in India | The Economic Times

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                        • #13
                          Originally posted by NewsReaper View Post
                          Honda's 5 pronged strategy to be No. 1.

                          - World Class localized R&D
                          - Increasing touchpoints
                          - New launch every quarter
                          - Using Bollywood Brand Ambassador to connect with the masses
                          - May set up assembly unit to make high end bikes cheaper instead of CBUs
                          Those steps are more than welcome!!!! We don't need Akshay Kumar making crores every month telling us what to buy! Use that capital to improve on quality

                          Biking is not about how many Km/h you put on your Speedo. It's about how many miles you put on your Odo. Ride Safe, Ride Long!

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                          • #14
                            Originally posted by NewsReaper View Post
                            Honda's 5 pronged strategy to be No. 1.

                            - World Class localized R&D
                            - Increasing touchpoints
                            - New launch every quarter
                            - Using Bollywood Brand Ambassador to connect with the masses
                            - May set up assembly unit to make high end bikes cheaper instead of CBUs

                            Source: Honda's 5 mantras to win in India - Honda's 5 mantras to win in India | The Economic Times
                            Maybe classes of showroom peoples to change there behavior/attitude towards the customer also help . Cause go around any corner in India at Honda Showroom 99% owners/peoples unhappy because of them .

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