Honda on a path of resurgence

It couldn’t have been a better statement for Honda Siel Cars India to make, not just on intent but also in keeping with its pre-eminence in the Indian automotive sphere. After having borne the brunt of a devastating loss to nation and its industry, literally knocked out for the count after the Japanese tsunami exactly a year ago followed by further disruptions brought about by the floods in Thailand, Japanese car and bike maker Honda has managed to get back to normalcy with its India operations. And the manner in which it has returned is evident of its products and the way it conducts itself.

Having been hamstrung by lack of deliveries and in some cases, next to no deliveries, of critical components it sources for its City saloon as well as the Jazz and Brio super minis, February 2012 marked the first signs of a resurgent Honda. What is good is that the supply chain is back in sync within the Asia-Pacific region and this has helped to work its own magic with the onset of full operations at its second plant at Tapukara in Rajasthan which stamps body panels for the new minis as well as major engine components for the drivetrain.

The resurgence is evident just by taking into account the pure numbers but there is much more to this than just number crunching. While the company registered sales of 8856 units for February 2012, which was 83% higher than in the same month last year (4483 units then), what came through crystal clear was that the Honda City yet again re-asserted itself as the standard bearer in the burgeoning mid-size saloon segment by clocking sales in excess of 6000 units! Clearly the City continues to be benchmark in this very aspirational segment of the Indian automotive market and with its refreshed appeal and slightly better equipment, it continues the successful theme which got Honda going with four wheels in the country some 14 years ago.

What is further impressive and something which we here at ZigWheels do not tire of telling any and everyone, is the fact that you need to have a great car to do well, and not whether it sips petrol or diesel! Honda which has never had anything to do with diesel in India (an aspect it is now working strongly to rectify but is yet a year away from production) has always sold its cars on the strength of its engines and their brilliance in delivering power, performance, pleasure and fuel efficiency has been reflected in the strong sales numbers as was evident last month.

There is however another story within the company and this is only just gathering critical mass. The Honda Brio mini has also started getting the traction in the market and with supplies from Thailand just limping to normalcy it has the potential to carve out significant numbers for itself in 2012. While HSCI sold over 2000 units of the Brio in February, the company has projected not just the City to continue to hold on to its perch at the top of its class but for the Brio (Read : Road Test) and the Jazz to effectively form a dual-edged prong in the mini and super-mini segments. There is also the likelihood of the Civic getting a facelift and with a larger and newer edition of the CR-V in sight, plus the small diesel engine (or engines if the grape vine is to be believed!) moving towards a final spec sign-off for production in Japan, Honda is now much better placed than it was exactly a year ago.

To also help move with the global scenario, an entire revision within its management teams has seen a change of guard at the helm of affairs at Honda Siel Cars India Ltd. The present incumbent, Takashi Nagai has been placed in charge of the company’s global supply chain network and he takes over as the head of Honda Logisitics. With many Japanese manufacturers now hedging their bets on the production front outside of Japan, this move is in line with this reality. Hironori Kanayama comes in from Honda’s Taiwan operations and he will replace Nagai in early April this year. There is also another change on the marketing front with Shigeru Yamazaki moving into the post of Senior Vice President and Director, Sales & Marketing, a post held to date by Seki Inaba who moves to head Honda’s Chinese automobile operations. How well these two gentlemen plan and pproject a resurgent brand and its people will be determining factors behind Honda getting back across the board in all the segments of the Indian market it operates in.