Honda Cars India Case Study

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One of the reasons production of the Jazz has ended is to free up capacity for the upcoming Amaze saloon which Honda is betting big on. The company wants to focus on the Brio and its derivatives in India, which is turning out to be largest market for Honda’s small car range. Besides, Honda is rumoured to be losing money on the cut-price Jazz, which is why it controlled its production to minimise losses. For the past few months, Jazz sales have averaged less than 400 cars a month but the demand is far higher. This has led to long waiting lists for the Jazz and irate customers, which could be another reason why Honda decided to stop manufacturing this model altogether. Ever since the last generation Honda Jazz was pulled out of the market owing to poor sales and lack of a diesel option, Honda Cars…show more content…
The market potential of passenger vehicles was 2,17,642 in June 2015 as compared to that of 2,18,828 in June 2014. Out of this, Honda Cars India, which is seeing good demand, sold 18,380 units in June 2015, up 12.65 per cent (June 2014: 16,316). The sales comprised 7,187 Citys, 6,834 Amaze sedans, 2,336 new Jazz hatchbacks, 923 Brios and 1,043 Mobilios. The company is all set to launch the new Jazz on July 8 and shipped the 2,336 units to 340 dealers across the country to ensure their availability immediately after market introduction. Players like BMW, Mercedes, Audi, etc dominate the luxury car segment in India and with the expansion of economy, more consumers aspire to own luxury cars. The market potential of two-wheelers was 13,07,710 in June 2015 as compared to 12,61,589 in June 2014. Out of which, Royal Enfield sold 36,597 units in June 2015, up 49.26 per cent on a base of 24,519 motorcycles in June 2014. The market potential of commercial vehicles was 51,446 in June 2015 as compared to 51,119 in June 2014 accounting a growth of 0.64 percent

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