honda cars india ltd – an analysis of
TRANSCRIPT
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Honda Cars India Ltd - Critical SuccessFactors and External Factor Analysis
Summary
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Company Background
Honda Cars India Ltd.(HCIL) is a 100%subsidiary of the Honda of Japan.
Production, marketing and export of passenger
cars in India
production facilities at Greater Noida in Uttar
Pradesh and at Bhiwadi in Rajasthan
Market share approx 5.08% as of Aug 2013 (6th
position in the passenger vehicles market)
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Product List
HONDA BRIO
Category : Hatchback
Price Range : 4.15 to6.15 lakhs approx
Engine Type : Petrol
HONDA AMAZE
Category : Sedan
Price Range : 5.05 to7.70 lakhs approx
Engine Type : Petroland Diesel
HONDA CITY
Category : Sedan
Price Range : 7.30 to10.60 lakhs approx
Engine Type : Petrol
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Product List - Contd
HONDA ACCORD
Category : Luxury SedanPrice Range : 20.35 to 21.15 lakhs
approx
Engine Type : Petrol
HONDA CR-V
Category : Premium SUVPrice Range : 20.50 to 24.50 lakhs
Engine Type : Petrol
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External Factor Analysis Summary
External Factors Weigh
t
Ratin
g
Weighte
d Score
Comments
OpportunitiesIncreasing demand for
diesel cars
VFM Offerings
/Competitive Pricing
Growing market for
compact SUVs and
MPVs
Exports have become
lucrative
.15
.15
.05
.10
2
3
1
2
.30
.45
.05
.20
Amaze is selling like hot cakes, new diesel
engine component production line installed
at Bhiwadi plant
Brio and Amaze doing well, plans to re-
launch Jazz by next year. Hit the bulls eye
with the pricing of Amaze and Brio, City
prices were also slashed by approx 50000
in 2011
No current product in the market, plans to
launch a compact SUV, a 7 seater MPV by2015
Plans to export over 6000 cars and approx
600 cr. worth of car components in this
fiscal year (Exports : Brio South Africa
and 8 other African nations , City Nepal,
Bangladesh and Sri Lanka
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External Factor Analysis SummaryExternal Factors Weight Ratin
g
Weighted
Score
Comments
Threats
Stiff competition in core
segments
Lower cost competitors
Economic slowdown-
Rupee depreciation
Petrol prices are soaring
high
TOTAL WEIGHTED SCORE
.20
.10
.10
.15
-----------
1.00
------------
2.5
2.5
4
2
.50
.25
.40
.30
_________
2.45
________
_
City has emerged a cash cow
Amaze is 2ndin its segment and
catching up to the leader i.e. Dzire
Brio is going steady in the
hatchback segment
Expanding its manufacturing in
IndiaRs 2500 cr. Investment
plans at the new Bhiwadi plant ,
Reducing imports and stressing on
localization
90% localization for Amaze and Brio
, City has over 70% localization
Local assembling for the new CR-V
Shifting focus to diesel cars with the
launch of Amaze , Prices slashed
for City, Brio and CR-V