Honda Cars India targets 5 percent contribution to parent’s global sales by FY17

Honda Cars India aims to increase its share in Honda’s global car sales volume from the current 3 percent to 5 percent in the next two years.

Speaking in Bangalore on May 1, Jnaneswar Sen, senior VP (Marketing & Sales), Honda Cars India, said the Indian subsidiary of the Japanese auto major sold 134,000 cars in 2013-14, which comprises 3 percent of the company’s global sales that stood at 4.4 million cars.

“Globally Honda has set a target to sell 6.6 million cars by 2016-17, of which 300,000 cars or 5 percent will come from India,” Sen said.

The Indian market for Honda cars is growing year-on-year. The Indian subsidiary recorded 83 percent growth in 2013-14, which is more than double the 37 percent growth in 2012-13.

“Now we are targeting Tier 3 cities in India by expanding our dealership network in all parts of the country,” he added. The company plans to add another 60 dealerships across the country in the current fiscal, of which 47 will be in Tier 3 cities. By the end of 2014-15, he said the company’s sales network will be expanded to 230 dealerships from the current 170 dealerships.

In Karnataka alone, Honda will set up 5 new dealerships, out of 14 dealerships planned for South India. One more dealership will come in Bangalore while other targeted Tier 2 and Tier 3 cities for new dealerships are Belgaum, Hospet, Shimoga and Udupi in Karnataka.

Bangalore is the third biggest market for Honda Cars India after Delhi and Mumbai and 7 percent of its Indian sales comes from Karnataka. South India accounted for 27 percent share in the total Indian sales during the period.

Giving an optimistic outlook for the current year, Sen said, “We will have good figures as we had in the last fiscal. We will definitely have growth in double digits.”

The company has begun 2014-15 on a sound note. thanks to the growing demand for the new City sedan and the Amaze. The carmaker recorded sales of 11,040 units in April 2014, up 30 percent (April 2013: 8,488). The model-wise sales were Brio (578), Amaze (3,355), City (7,044), CR-V (63).