Honda Cars India is keen on reinforcing the brand as well as sharpening its strategy as a premium player across segments ahead of the automobile market expansion it expects from 2020 onwards.
“We believe real motorisation or expansion will be seen in 2020... it is important to establish the foundations towards that period rather than chasing quick volume,” President and CEO Yoichiro Ueno told reporters here on Friday.
Honda Cars’ volume in the segment is less compared with Maruti or Hyundai. But the company planned to overcome this handicap by focusing on quality and gaining acceptance in the price sensitive market. As volumes expanded, it could also look at reducing prices, he said.
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While it was important to grow volumes and maintain a certain level of market share, the priority was on ways to reinforce the brand, he said, adding the company expected to achieve a moderate growth in the current fiscal. The growth, however, would be more than that of the industry, Mr. Ueno said.
In 2016-17, Honda Cars India sold 1,57,313 units, about 18% less compared to the previous fiscal. It, however, began this fiscal with a 38.1% growth in April and expected to maintain the momentum on the back of the good response to New City and WR-V SUV, which were introduced in February and March respectively.
On the Goods and Services Tax (GST), he said customers may postpone their purchase decision until clarity emerges on the new rates and their impact.
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Noting that the fast growth in SUV sales for the industry would continue, with tier-II and III cities driving the demand, Mr.Ueno said Honda Cars is assessing the prospects of introducing the HR-V SUV.
To a query on plans for electric cars, he said while Honda globally was working on them but it was bit too early to talk about them for India as there was need for the requisite infrastructure to be in place. Moreover, electric cars were also expensive.