Honda Cars India expects Tier-2 and Tier-3 locations continue to drive its major portion of sales. The company has seen bigger sales contribution from these locations to its models.“Growth in Tier-2 and Tier-3 locations has been faster as the propensity to consume has increased. There are many factors that drive vehicle growth in these locations. Among others include growing young population, changing mindset and high level aspirations. We expect to sustain the present growth in these locations,” Jnaneswar Sen, Senior Vice-President-Sales & Marketing, told this correspondent.
About 60 per cent of Amaze’s sales are contributed by Tier-2 and Tier-3 cities, while in the case of Honda City the contribution is about 55 per cent. Also, stronger diesel options with better mileage promise in its product line-up have helped the company lure buyers from smaller cities and towns.
But Mr. Sen said both Amaze and new City were doing very well. While Amaze is nearing one lakh units cumulative sales (since its launch last year), fourth generation new City, which was launched in January this year, has crossed the 50,000 units milestone. “City has 50 per cent market share,” he added.
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The company has so far clocked close to 9,000 bookings for its MPV (multi-purpose vehicle) Mobilio, rolled out last week, but bookings started 2-3 weeks ago.