Thursday, July 20, 2006

IIPM-Publications:- Does it make ‘Civic’ sense?

Honda must ramp up capacity & move towards a small car launch
Honda Siel may have boasted of having the best suspension technology, but that may not be enough to ensure a smooth ride in India for Honda’s Civic. The company launched the ‘Civic’ in India on July 4, 2006 and has set a target of selling more than 10,000 units of Civic in financial year 2006-07. That is quite ambitious, considering that Civic is positioned in the A4 segment, which clocked sales of 23,326 units in 2005-06, a drop of 9% from the previous year. This launch will certainly increase competition in the A4 segment and fire up strategic think-tanks among players like Toyota, Skoda, GM. Mohit Arora, Director-India, J. D. Power Asia Pacific explains “Some players may employ promotion tactics, while others may look at launching new models or upgrades. Hyundai is likely to launch the new Elantra shortly.” Besides competition, Honda has a major, potentially debilitating challenge, and that is the capacity crunch it faces in India.

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Source:- IIPM-
Business and Economy,

Prof. Arindam Chaudhuri

Copyright IIPM:- 2006

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