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Honda Cars India Ltd - Critical SuccessFactors and External Factor Analysis

Summary

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Company Background

Honda Cars India Ltd.(HCIL) is a 100%subsidiary of the Honda of Japan.

Production, marketing and export of passenger

cars in India

production facilities at Greater Noida in Uttar

Pradesh and at Bhiwadi in Rajasthan

Market share approx 5.08% as of Aug 2013 (6th

position in the passenger vehicles market)

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Product List

HONDA BRIO

Category : Hatchback

Price Range : 4.15 to6.15 lakhs approx

Engine Type : Petrol

HONDA AMAZE

Category : Sedan

Price Range : 5.05 to7.70 lakhs approx

Engine Type : Petroland Diesel

HONDA CITY

Category : Sedan

Price Range : 7.30 to10.60 lakhs approx

Engine Type : Petrol

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Product List - Contd

HONDA ACCORD

Category : Luxury SedanPrice Range : 20.35 to 21.15 lakhs

approx

Engine Type : Petrol

HONDA CR-V

Category : Premium SUVPrice Range : 20.50 to 24.50 lakhs

Engine Type : Petrol

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External Factor Analysis Summary

External Factors Weigh

t

Ratin

g

Weighte

d Score

Comments

OpportunitiesIncreasing demand for

diesel cars

VFM Offerings

/Competitive Pricing

Growing market for

compact SUVs and

MPVs

Exports have become

lucrative

.15

.15

.05

.10

2

3

1

2

.30

.45

.05

.20

Amaze is selling like hot cakes, new diesel

engine component production line installed

at Bhiwadi plant

Brio and Amaze doing well, plans to re-

launch Jazz by next year. Hit the bulls eye

with the pricing of Amaze and Brio, City

prices were also slashed by approx 50000

in 2011

No current product in the market, plans to

launch a compact SUV, a 7 seater MPV by2015

Plans to export over 6000 cars and approx

600 cr. worth of car components in this

fiscal year (Exports : Brio South Africa

and 8 other African nations , City Nepal,

Bangladesh and Sri Lanka

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External Factor Analysis SummaryExternal Factors Weight Ratin

g

Weighted

Score

Comments

Threats

Stiff competition in core

segments

Lower cost competitors

Economic slowdown-

Rupee depreciation

Petrol prices are soaring

high

TOTAL WEIGHTED SCORE

.20

.10

.10

.15

-----------

1.00

------------

2.5

2.5

4

2

.50

.25

.40

.30

_________

2.45

________

_

City has emerged a cash cow

Amaze is 2ndin its segment and

catching up to the leader i.e. Dzire

Brio is going steady in the

hatchback segment

Expanding its manufacturing in

IndiaRs 2500 cr. Investment

plans at the new Bhiwadi plant ,

Reducing imports and stressing on

localization

90% localization for Amaze and Brio

, City has over 70% localization

Local assembling for the new CR-V

Shifting focus to diesel cars with the

launch of Amaze , Prices slashed

for City, Brio and CR-V