Honda has always been a brand which offered neither too expensive & unaffordable cars nor ultra low cost vehicles which lack the essential features. For the brand the focus has always been over the price range of 8 to 25 lakh and has succeeded in the same as well.
Latest buzz around it is that the company is planning to increase the number of dealerships before the year 2012. With the starting of the year 2011 Honda’s dealerships will rise by an appreciable 28% with the total number reaching 150 across 90 cities in the country.
Currently there are 117 dealerships in 71 cities and the firm will aim for atleast one dealership every month as stated by the VP for marketing. Basically there are two reasons for this step, one being the company’s wish to reach out to every customer in the country and the other is the 2011 bound small car.
Honda is also working on bringing diesel technology to its cars since diesel cars are the need of the hour as they are fuel efficient.The company has planned the launch of its small car for the second quarter of 2011 and it will compete against the Maruti Swift, Nissan Micra , Hyundai i20, Volkswagen Polo and Fiat Grande Punto.
Analysts say that the small car segment is the most rapidly increasing one with a potential of over 79% in the net sales. Honda has been facing a fall of 4% in total sales and with the new strategy to be adopted, the company is expecting a lot.
Honda’s Greater Noida facility which is capable of delivering 1 lakh units per annum is currently producing 61000 units and will be dedicated to the production of the upcoming low cost car.