Honda City waiting period at 4 months in India
Honda Cars India Ltd. (HCIL) is revising production strategy to accommodate high number of bookings of new City sedan, that are shooting through the roof. New Honda City has made it to 30,959 shelters in first four months of 2014. However, sales of Amaze, Honda’s previous best-seller, is struggling to keep up pace as City gets all attention in factory floor.
Jnaneswar Sen, Vice-President of Marketing and Sales at HCIL, states that some variants of City now take four months of waiting period to deliver, and Honda has made some adjustments (increase City-Amaze production ratio) to cater to customers waiting for their City. This rebalancing in conjunction with temporary closedown of Bhiwadi Plant in Rajasthan due to election proceedings, affected Amaze’s numbers, as said by Mr. Sen.
Further Mr. Sen mentioned that Honda was expecting only 20 percent of overall sales to be comprised of high-end City, but present stats show that about 50 percent of bookings were made for that only. Also, City featuring CVT (Continuously Varying Transmission) gearbox in Automatic variant accounts for 30 percent of the overall sales.
Honda Cars India have been producing cars at their plant in Greater Noida, Uttar Pradesh. Their second plant in Tapukara, Rajasthan began rolling out cars; the first one being Amaze, in February 24 2014. Honda plans to sell 2,40,000 units per year in India, combining forces of these two plants, put to use at full capacity. During last fiscal (2013-14), HCIL made record sales of above 1 lakh (1,34,339), marking about 75% growth in sales compared to previous year.
By March 2017, Global Honda plans to sell 12 lakh units in Asian Oceania region, expecting 25% of sales contribution (3,00,000 units per annum) from HCIL. Tapukara plant is also to be made an export hub for major Petrol & Diesel engine components and some more parts to other Honda plants in South-east Asia region.