Honda Cars India recently completed 20 years with their flagship ‘Honda City’. The company recently launched the facelift version of the model and it bets it would continue with the same pace of growth in future. The company’s AVP & Operating Head-Marketing, Rakesh Sidana is in conversation with Debasish Acharya.
How was 2017 like in terms of car sales and what expectations do you have for 2018?
We are doing very well. As per volume sales is concerned we have sold 1.30 lakh units in the country this year which is a 20 per cent leap over the last year’s. Globally we have crossed cumulative sales of 3.6 million units by selling our models across 60 countries. Honda City and Honda BR-V drive our growth.
How does Odisha contribute to your national sales and do you think the state is a potential market for car companies?
We have seen 100 per cent growth in the state this year. We sold 1236 units and we are hopeful to see more growth going forward, for the GDP growth of the state is sound and the current government gives more focus on investments which will enhance the average income of a common man resulting in more demand for cars. Odisha was recently declared the most investment friendly destination and I think such investments are likely to drive the four-wheeler industry in the state. As regards Honda, the state contributes 2 per cent to our national sales.
What is the status of twenty-year old Honda City ?
Since the inception of Honda City in 1998 we have sold seven lakh units till date. Out of this, we sold 59,378 units of its first generation model from 1998 to 2003 and 1,77,742 units of the second generation model between 2003 and 2008. The company sold 15,197 extra Honda City units from 2008 to 2013 which was devoted for the third generation. We have already sold 2,80,460 units of the fourth generation model.
What is your customer base for Honda City in the state and what expectations do you have for the coming year?
In Odisha we have sold 4,838 units till date out of which the fourth generation model accounts for a major share at 2,968 units. This year we have sold 661 units in the state and are hopeful to see a double digit growth in 2018.
Why did you think of diesel variants when previous generations were available in petrol models?
We sustained our growth during dieselisation by sticking to our petrol models. Although entirely petrol driven, City was able to hold on to its turf even as customers were drifting to diesel offerings.
Entry level cars like Renault KWID and Maruti Alto are doing well, and even their growth drivers. Do you have any plan to cater to this segment other than Honda BRIO.
Honda Brio is the most admired entry level car for the company and we will continue with it. There is no plan to launch any model in this segment.
Mahindra has already rolled out an electric vehicles (EVs) and even the government is focusing more on this space? Any plan on this?
We are still in the process of making a strategy for EVs. It will be too early to say anything on it.
What are your plans for coming years?
In next three years we are hopeful to launch six new models including upgradations. No plans for new models during this fiscal.
Odisha is a good market for sports utility vehicles (SUVs). Do you have any plan to launch any model in this segment?
SUVs are preferred because of higher ground clearance and we already have models as Honda BR-V and Honda WR-V. Obviously ground clearance will be one of the factors while formulating the new models. It is too early to reveal the segments in which the new cars will be lined up.