Japanese automobile major Honda is optimistic of achieving double-digit growth in the current financial year. It is betting big on the BR-V, a compact SUV which would hit the roads in May. The company, which reported two per cent growth in 2015-16, is hoping to increase its footprint with this launch.
The strategy includes expanding its product portfolio and increasing sales points. It is planning to invest Rs 380 crore, to increase capacity in anticipation of higher demand. To support the BR-V, it plans to increase the capacity of its Rajasthan plant to 180,000 units. It also has a plant at Greater Noida with a capacity of 120,000 units. After the expansion at Rajasthan, its total capacity would increase to 300,000 units per annum.
“With the current network, we have covered almost all the market. The environment is challenging and the industry is under pressure, which is why we could grow only by two per cent.” said Jnaneswar Singh, vice-president, sales and marketing, Honda Cars India.
Last year, the growth was driven by compact SUVs, premium hatchbacks and entry sedan segments. The trend is expected to continue. To cater to the premium hatchback segment, Honda has launched the Jazz and for the company SUV segment it would launch the new SUV. The selling quotient for the latter would be style, premium interiors, three rows with seven seats — which the company claims is a first time in the segment, pricing and quality. This is the kind of vehicle in which people can go anywhere, added Sen.Read More
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