Honda ready for counter-attack with Amaze launch

  • Apr 5, 2013
  • Views : 7060
  • 3 min read

  • By Tnn
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In an interview to TOI,Hironori Kanayama, president and CEO of Honda Car India says the company is prepared for a "counter-attack", especially as it makes a long-delayed entry into the fast-growing diesel market

Honda Amaze

Hironori Kanayama, president and CEO of Honda Car India, has over three decades of experience with the Japanese parent and worked in many challenging markets like China. Now, after nearly one year of stint in India, Kanayama faces a bigger challenge - getting the company back on track. In an interview, he tells TOI that Honda is prepared for a "counter-attack", especially as it makes a long-delayed entry into the fast-growing diesel market. 

Excerpts:

Honda is about to launch the Amaze sedan, while committing fresh investments of Rs 1,200 crore. How confident are you about your India strategy?

I am confident about our plans and about India's potential. The market will grow steadily and we will capture a higher share in an expanding market.

Has Honda learnt from its past mistakes regarding vehicle pricing, considering that you had to undergo massive price cuts on Jazz and the City after initially pricing them higher?

We think that stable pricing is very essential. Therefore, we are trying to reduce the influence of exchange rate fluctuations by increasing local content.

Pricing is very crucial in India. Do you think Honda is prepared to take on big rivals like Maruti Suzuki in this aspect?

We should not betray customer expectations... the past is past, all I can do is to change the future.

Honda Amaze

Honda has an aggressive product plan for India. Can you give me a roadmap of the new launches?

Within the next three years, we will come with five big launches. The next-generation Jazz and an all-new utility vehicle will debut next year.

What about the new City?

First the new Jazz will be introduced globally. The City, which is a sister model of Jazz, will come after that.

Compact SUVs have had a good run in India. When can we expect a smaller SUV?

Recently, we had showcased a Jazz-based SUV concept. That can be one of the options in the future. Maruti is very strong in India and one of the reasons is their multi-product strategy in small cars.

Along with Brio, will you add more models to have a similar strategy?

What we can learn from Maruti Suzuki is what type of car is liked by Indian customers and what kind of features help achieve cost competitiveness. India was one of the lead countries for Brio during development.

As you work on other models, what role will India play in development?

It depends on the model... (but) to develop any specific model only for India, we have to make a huge investment. At present it does not pay to produce solely for the Indian market.

Honda Amaze

Do you have plans to make India a global hub for any specific model?

Honda's way of thinking is that we manufacture vehicles wherever there is a market. In the bigger markets, we already have plants. The possibility of exports lies mainly in emerging markets like South Africa.

Honda closed 2012-13 with sales of around 74,000 units. Where do you see yourself by 2015-16 with more models and a bigger retail network?

We are confident of having a double-digit growth. I hope to utilize our capacity of 2.4 lakh units by then.

Honda has not been making profits in India. When do you think your operations will turn profitable?

We want to do it as early as possible. It depends on our localization plans, which helps to enhance cost competitiveness. Besides, rupee exchange rate is also crucial.

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