Honda Siel Cars India Ltd: An Overview
Present Since
• 1995
Production Plants & Annual Capacity
• Greater Noida Plant: 100,000 units• Tapukara Plant: 60,000 units
Growth
• 343 % growth in May 2012 v/s May 2011• May 2012: 10,334 units sold • May 2011: 2,334 units sold
HONDA CITY
• Honda city is a mid sized car for Honda Siel Cars India ltd.
• Honda city crossed 50k units in 2009.
• Honda City was market leader from 2000.
• It used to be a matter of pride to own and drive a Honda City
Honda City VariantsVariants Price
Honda City 1.5 E MT 7,49,000
Honda City 1.5 S MT 8,19,600
Honda City 1.5 S MT Elegance 8,56,241
Honda City 1.5 VMT 8,64,800
Honda City 1.5 S MT Inspire 8,90,738
Honda City 1.5 V MT Elegance 8,99,404
Honda City 1.5 V MT Exclusive 9,16,900
Honda City 1.5 V MT Inspire 9,35,938
Honda City 1.5 VAT 9,37,000
Honda City 1.5 V AT Elegance 9,71,604
Honda City 1.5 V AT Exclusive 9,89,100
Honda City 1.5 V AT Inspire 10,08,138
SWOT Analysis
• StrengthsReliabilityBrand NameElegant appearance
• WeaknessNot able to sustain in High CompetitionNo Diesel EngineLack of features
SWOT Analysis
• OpportunitiesCustomer loyalty Innovation
• ThreatsAvailable only in petrol engineHigh CompetitionRise in petrol price
DOWN FALL OF HONDA CITY
• Demand shifted to fuel efficiency due to rise in petrol price.
• More competitors entered with diesel variant and more features .
• Not appropriate steps taken to regain the top position.
DOWN FALL OF HONDA CITY
March April May
2010 4338 2787 3121
2011 2773 1542 1828
250750
1250175022502750325037504250
SALES IN UNITS
Source- NMIPL
CITY VS VENTO
Mar/11 Apr/11 May/110
500
1000
1500
2000
2500
3000
3500
4000
4500
2773
15421828
3973
28662403
Sales in units
Honda CityVolkswagen Vento
Source- NMIPL
Price and FeaturesMaruti SX4 Hyundai Verna Honda City VW Vento
Price 7,78,999 8,09,651 7,49,000 8,19,000
Air Bags TWO SIX TWO TWO
Start Push Button
No Yes No No
Climate Control Yes Yes No Yes
Rear Parking Sensor
No Yes No No
Market Share
Maruti Swift Dzire28%
Tata Indigo20%
Honda City8%
Maruti SX410%
VW Vento11%
others24%
Sales (March 11)
Source- NMIPL
Mission
“Acquire market share of 15% in sedan segment”
“Bring out innovation and differentiation in the new launch ”
Customer’s Need
Emotional Needs Elegant Looks Dependable and loyal Well balanced and fuel efficient
Mind-Set To have a luxurious feeling
while driving Makes feel more comfortable
and pride Cost conscious Fuel efficient
Functional Needs Long lasting/ Safe/
Good performance Reliable and
Trustworthy Performance
Spacious / Roomy Flexibility / Utility
Positioning of Honda City
Upper middle and higher income families who wants to upgrade from hatchback to sedan car.
Cities and Rural areasUpper Middle and Higher Incomer groups
Families
Geographic- Tier1 and Tier 2 citiesDemographics-Income(Upper Middle, High)
Lifestyle- Family use, Personal use
People who wants four wheelers and are sedan lovers
People who wants to travel
Market
Target Market
Segment
Target Segment
Customer
Prestigious Car
Marketing MIX
Product
Diesel Engine
Two Variants in Diesel
Available in three colours
Induce more airbags
Marketing MIX
• Product
• Available in 3 variants(Dx, Dxi,Dhi).DX DXI DHI
Diesel Engine Y Y Y
Push Start N Y Y
Chrome N Y Y
Climate Control
N N Y
Price• As diesel engine and other feature are
implemented the cost of this car has raised.
• The revised price will be Rs 8,05,000 little lesser than Vento and Verna.
• Brand Value
Promotion
• Advertisement- TV Commercials and News paper
• Trade Show
• Partnership with ICICI
• Social Media Community
Place
• Minimize Channel length will prevent price escalation and preserving its competitive advantage.
• Increase the number of dealers.
• Improve the efficiency of logistics.
Conclusion
With Diesel variant and added features in this car , consumer will
surely get attracted and the mission of achieving 15% of market share will definitely be achieved.
As there is various promotion made, this car will surely become a hot cake for Indian car consumer.
'63 Honda’s automobile business begins with the release of its first sports car (S500) and light truck (T360). '67 Front-wheel-drive minicar, N360, released. '68 N Series of minicars tops Japanese sales. '69 Automobile production in Taiwan begins (first overseas production of Honda automobiles). '70 N360 top seller in Japan for its first three years. Z and Vamos minicars released. '72 Civic released. CVCC low-emission engine first to comply with 1970 U.S. Clean Air Act. '75 Automobile production in Indonesia begins. '76 Accord released.
Automobile production in the U.S. begins (a first for Japanese automobile manufacturers). '86 Acura brand launched in the U.S. (first Japanese luxury automobile brand). '88 Total automobile production reaches 15 million units. '89 Accord becomes best-selling car model in the U.S.
1990's '92 Worldwide automobile production reaches 20 million units. '95 Worldwide Civic production reaches 10 million units. Worldwide automobile production reaches 30 million units. '97 LEVs (low emission vehicles) Civic Ferio and Partner 1.6 released. Leasing of EV Plus electric vehicle begins in the U.S. '99 Insight hybrid released
2000's '01 Automobile production reaches 10 million units in the U.S. Fit and Civic Hybrid released. '02 Leasing of FCX fuel-cell vehicle begins in Japan and the U.S. Fit achieves No.1 annual sales among domestic registered vehicles. '03 Worldwide automobile production reaches 50 million units. '05 Leasing of FCX fuel cell vehicle for home use begins. Worldwide sales of Honda hybrid vehicles reach 100,000 units. '06 Sales of Bioethanol-compatible Flexible Fuel Vehicle (FFV) models for Brazilian market begin. Acura brand launched in China. '08 Leasing of FCX Clarity fuel cell vehicle begins in Japan and the U.S. '09 Insight hybrid vehicle released. '10 CR-Z hybrid vehicle released.