Honda embarks on major network expansion drive

Opens 200th car dealership in Hyderabad, plans 100 more in next 16 months

Hyderabad: Honda Cars India Limited, buoyed by positive response to three of its new models including Amaze sedan and Mobilio MPV, has embarked on a massive network expansion drive with plans to open 100 new dealerships across the country over next 16 months.

The automaker, which is the Indian subsidiary of Japan’s Honda Motor Co, opened its 200th dealership in the city on Thursday.

“Network expansion is a critical part of our larger business goal of achieving sales of 3 lakh units per annum by March 2017. We have a plan in place to add 100 new dealerships over the next 16 months. That means our dealership network will reach 300 by March 2016,” Hironori Kanayama, President & CEO, Honda Cars India, told media after inaugurating 200th showroom, Metro Honda, here. He further said that most of the new dealerships would come up in Tier II and II cities.

“As we expand our business in the Indian market, we have to move closer to our customers in order to extend best services,” Kanayama said. On new launches, he said the company would delay the launch of Jazz premium hatchback in the wake of increasing demand for Mobilio, Amaze and City sedan. Earlier, it scheduled the launches of Mobilio and Jazz for the current fiscal year ending on March 2015. “The demand for the existing models is very strong, so the launch of the Jazz is slightly adjusted. We anticipate the launch any time next year,” he explained.

Replying to query, he said Honda Cars would clock double digit sales growth this fiscal. During the April-October, 2014, the automaker clocked 1.01 lakh units in total sales, a growth of 43 per cent from 70,831 units a year ago.