MARKETING STRATEGIES OF HONDA

HONDA SIEL CARS

Submitted in partial fulfillment of the requirements
for the award of the degree of

Guide:
Prof. KEN

Submitted by:
Shubham Gupta
Section- C

AMITY GLOBAL BUSINESS SCHOOL

100 VICTORIA STREET,NATIONAL LIBRARY BUILDING 188064
SINGAPORE

EXECUTIVE SUMMARY
The present study has been carried out to analyze the Marketing Strategy of Honda
Motors in India.
The present study initially focused on studying the Indian car industry, just a few
years ago, the only possible choice the Indian car consumer had was two or three
models that were benchmarks of a forlorn era. The Government of India was against
the idea of foreign manufacturers entering the Indian car industry. They feared it
would wipe out the domestic industry. Came 1991 and we witnessed a dawn of a new
era for the Indian Industry. Liberalization and globalization emerged as new policies.
The Car industry was one of the major benefactors of this policy. Suddenly, the Indian
car consumer was served an elaborate (well almost) menu of foreign cars. Like
anywhere else in the world, cars are the most visible symbol of a countrys high
The study has also studied in detail the profile and strategies of Honda; particularly
Honda City, Honda Motor Company, Limited is a multinational corporation, engine
manufacturer and engineering corporation headquartered in Japan. The company
manufactures automobiles and motorcycles, trucks, scooters, robots, jets and jet
engines, ATV, water craft, electrical generators, marine engines, lawn and garden
equipment, and aeronautical and other mobile technologies. Honda's line of luxury
cars is branded Acura in North America and China. More recently they have ventured
into mountain bikes. The present study aims to analyze the marketing strategy of
Honda Automobiles in India.
This study on Honda City revolved around the following broad objectives: To study
the Car market structure in India and to understand the positioning and repositioning
of Honda Automobiles in it, and To present the market potential and the marketing
strategy of Honda Automobiles with special reference to Honda City.

TABLE OF CONTENTS
1. INTRODUCTION
2. PROFILE OF THE ORGANISATION
3. MARKETING STRATEGIES OF HONDA CARS
4. CONCLUSION
5. BIBLIOGRAPHY/REFERENCES

PROFILE OF THE COMPANY

1.0: Introduction and rationale of the topic
Well-developed transport network indicates a well-developed economy. For rapid
development a well-developed and well-knit transportation system is essential. As
India's transport network is developing at a fast pace, India Automobile Industry is
growing too. Also, the Automobile industry has strong backward and forward linkages
and hence provides employment to a large section of the population. Thus the role of
Automobile Industry cannot be overlooked in Indian Economy. All kinds of vehicles
are produced by the Automobile Industry. India Automobile Industry includes the
manufacture of trucks, buses, passenger cars, defense vehicles, two-wheelers, etc. The
industry can be broadly divided into the Car manufacturing, two-wheeler
manufacturing and heavy vehicle-manufacturing units.
The major Car manufacturer are Hindustan Motors, Maruti Udyog, Fiat India Private
Ltd., Ford India Ltd., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd.,
Hyundai Motors India Ltd., Skoda India Private Ltd., Toyota Kirloskar Motor Ltd.
SALES
Domestic passenger car sales in India increased by 16.42 per cent in November to
1,03,031 units from 88,501 units in the same month last year. According to the figures
released by the Society of Indian Automobile Manufacturers (SIAM), commercial
vehicle sales during the month rose by 0.38 per cent at 40,466 units, against 40,313
units for the corresponding period last year.
The Society of Indian Automobile Manufacturers' Association (SIAM) estimates
sales figures of 7 million motorcycles, 1.55 million cars (including MPVs, SUVs
and MUVs) and 8.3 million two-wheelers, for the 2009-10 fiscal. Consequently,

India should be able to contribute about 3 per cent to the total automotive industry
output by end-2010.
Maruti Udyog Ltd, India's biggest car maker, recorded a growth of about 20.7 per
cent during April-August 2010 - selling 2,93,536 vehicles as against 2,43,211 in
the corresponding period of the previous year. For the first time, Maruti Suzuki
sold more cars in India than its parent in Japan during the first half of the fiscal
year.
Mahindra & Mahindra Limited (M&M) cumulative sales (including exports)
during the April-September period grew by 35.8 per cent - 1,06,094 units
compared to 78,144 units in the corresponding period last fiscal.
Honda Siel Cars India Ltd. (HSCI), one of the leading manufacturers of premium
cars in India, recorded a growth of 16.1 per cent in cumulative sales during
January-August 2010 over the previous year selling 41,638 units against 35,853
units.

1.1. Profile of the Organization

Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint
venture between Honda Motor Co. Ltd., Japan and Siel Limited, a Siddharth Shriram
Group company, with a commitment to providing Hondas latest passenger car models
and technologies, to the Indian customers. The total investment made by the company
in India till date is Rs 1620 crores in Greater Noida plant and Rs 784 crores in
Tapukara plant.
HSCIs first state-of-the-art manufacturing unit was set up at Greater Noida, U.P in
1997. The green-field project is spread across 150 acres of land (over 6,00,000 sq.
m.). The annual capacity of this facility is 100,000 units. The companys second
manufacturing facility is in Tapukara, Rajasthan. This facility is spread over 600 acres
and will have an initial production capacity of 60,000 units per annum, with an
investment of about Rs 1,000 crore.
The companys product range includes Honda Jazz, Honda City, Honda Civic and
Honda Accord which are produced at the Greater Noida facility with an indigenization
level of 77%, 76%, 74% and 28% respectively. The CR-V is imported from Japan as
Completely Built Units. Hondas models are strongly associated with advanced design
and technology, apart from its established qualities of durability, reliability and fuelefficiency.

Honda Jazz
Honda India launches new Jazz with advanced features, Price starting at Rs. 5.50
lakh. Honda Jazz is the companys first offering in the premium compact car segment.
The Jazz is a segment-defining car that has won accolades and adoration all over the
world. Widely acclaimed for its dynamic styling, spacious interiors, versatile utility
and remarkable performance, the Honda Jazz brings added fun and excitement to the
driving experience.
The Jazzs dynamic performance is achieved by four-cylinder 1.2-liter i-VTEC
engine, featuring Programmed Fuel Injection that delivers maximum output of 90 PS
(66 kW) @ 6,200 rpm and Torque of 110 Nm (11.2 kg-m) @ 4800 rpm while giving
impressive fuel economy of 16.1 km/l, as per ARAI test data. Safety of passengers
and pedestrians is a top priority for Honda and all safety equipment is standard across
all variants. The Jazz practicality has been enhanced with three-mode Magic Seat
configuration to achieve multiple seating and cargo-carrying configurations for long
or tall objects in addition to the standard five-passenger mode. The Honda Jazz is
available in three variants - Honda Jazz, Jazz Select and Jazz X.
Honda City
Honda's all-new Third Generation Honda City was launched in September 2008. It
comes with a completely new design, new engine, and spacious cabin and equipped
with various active and passive safety features. The company has also launched the
1.5 V MT & AT version of the City in September 2009. The new Honda City is
available as SMT, VMT and VAT. Additionally, all the variants is available in 2
attractive types Elegance and Inspire.

The all new Honda City achieved milestone sales with 50,000 units sold within one
year of its launch. Since its launch in the country in 1998, Honda City has been a best
seller in the premium car segment.
The all new Honda City has bagged several awards including 3 Car of the Year and
the prestigious ICOTY (Indian Car of the Year) 2009. The model made a clean sweep
in the viewers choice category winning all 3 awards announced by NDTV Car India
& Bike India Awards, UTVi Autocar Awards and CNBC TV 18 Overdrive Awards.
These awards truly exemplify the experts as well as the customers admiration and
trust in the product.
Honda Civic
The Civic is Hondas largest selling model globally and is now sold in approximately
160 nations and regions worldwide. Honda Civic was launched in India in July 2006
which became a runaway success and was also awarded the Indian Car of the Year
in 2007.
Honda Accord
The Honda Accord was first introduced in India in year 2003. HSCI launched the 8th
generation Honda Accord in India in May 2008. The Honda Accord is available in
2.4L and 3.5L V6 engine.
The 2.4L comes in three types in both Automatic and Manual transmission Accord
2.4, Accord 2.4 Elegance and Accord 2.4 Inspire. The All-new Accord comes with 5speed Manual Transmission and 5-speed Automatic transmission with Paddle shift, to
give the exhilarating experience of F-1 racing. The AT now has Shift Holding System
which avoids unnecessary gear shifting on winding roads and helps in hassle free
drive.
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The Honda Accord V6 3.5-liter comes with Electric Sunroof and additional luxury
features for enhanced exterior styling. The 3.5L i-VTEC engine features an advanced
Variable Cylinder Management (VCM) system that switches between six-, four-, and
three-cylinder combustion depending on the driving conditions and thereby delivering
maximum power of 275 PS during six cylinder operation and impressive fuel
economy in VCM mode while cruising.
The new 8th generation Honda Accord has also won the UTVi Autocar Best Luxury

Graphs 2.1
Showcase Manufacturing Facility
HSCIs state-of-the-art manufacturing unit was set up in 1997 at Greater Noida, U.P
with an investment of Rs. 450 crore. The green-field project is spread across 150 acres
of land (over 6,00,000 sq. m.). The initial installed capacity of the plant was 30,000
cars per annum, which was thereafter increased to 50,000 cars on a two-shift basis.
The capacity has further been enhanced to 1,00, 000 units annually in February 2008.
The capacity expansion was necessitated by the excellent performance of all the
Honda models, particularly the growing demand for City ZX in India. Several
modifications were done by the company with the objective of offering higher quality

products to its customers, faster and quicker. The expansion process also included
expansion of the covered area in the plant, from 1, 07,000 sq. m. to 1, 31,794 sq. m.
HSCI currently produces the Honda City ZX, Civic and Accord models in India and
the premium SUV, CR-V is sold as a fully imported unit from Japan. The company
operates under the stringent standards of ISO 9001 for quality management and ISO
14001 for environment management.

Overseas production of Civic began in Indonesia in 1975, and Civic vehicles are now
made in 11 countries, including North America, Europe, Asia and South America.
Total cumulative production of Civic models at the end of calendar 2004 was
approximately 16 million unitsmaking it one of the most popular models in Honda
history. The eighth-generation Civic was launched towards the end of 2005 in the US
and early 2006 in Japan. It already has the distinction of being voted as the top car in
different markets and categories. Some of these include:
Car of the Year at the prestigious Detroit Auto Show 2006.
Red dot: best of the bestaward for highest design quality in Europe.
2006 Car of the Year by the Automobile Journalists Association of Canada
(AJAC).

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CONCLUSION
The present study has been carried out to analyze the Marketing Strategy of Honda
Motors in India.
The present study initially focused on studying the Indian car industry, just a few
years ago, the only possible choice the Indian car consumer had was two or three
models that were benchmarks of a forlorn era. The Government of India was against
the idea of foreign manufacturers entering the Indian car industry. They feared it
would wipe out the domestic industry. Came 1991 and we witnessed a dawn of a new
era for the Indian Industry. Liberalization and globalization emerged as new policies.
The Car industry was one of the major benefactors of this policy. Suddenly, the Indian
car consumer was served an elaborate (well almost) menu of foreign cars. Like
anywhere else in the world, cars are the most visible symbol of a countrys high
The study has also studied in detail the profile and strategies of Honda; particularly
Honda City, Honda Motor Company, Limited is a multinational corporation, engine
manufacturer and engineering corporation headquartered in Japan. The company
manufactures automobiles and motorcycles, trucks, scooters, robots, jets and jet
engines, ATV, water craft, electrical generators, marine engines, lawn and garden
equipment, and aeronautical and other mobile technologies. Honda's line of luxury
cars is branded Acura in North America and China. More recently they have ventured
into mountain bikes. The present study aims to analyze the marketing strategy of
Honda Automobiles in I

REFERENCES/BIBLIOGRAPHY

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BOOKS REFERRED TO
1. Structural Configuration and Strategic Investments
2. Indian Automobile Industry: Patterns of Expansion, Entry and Performance
3. Structural analysis of the Indian Automobile Industry
4. INFAC Cars Industry Report on Indian passenger car market
5. Entry Strategies in Emerging Economies: The Case of the Indian Automobile
Industry
SITES REFERRED TO
(i).

www.google.com

(ii).

www.autointell-news.com

(iii).

www.hondasielcarsindialtd.com

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