It’s a eureka moment for Honda Cars India (HCI) in its 29th year. From selling excellently engineered cars in the domestic market and creating a loyal but small base of customers, the carmaker is now exporting big numbers across key international markets including home country Japan, showcasing its robust manufacturing prowess (Make-in-India).
But much of the buzz around exports is on account of the Honda Elevate SUV, and its export to Japan. The Elevate made its global debut with India as the first market in September 2023. In the past six months, it has sold over 30,000 units and counting.
Takuya Tsumura, President and CEO, HCIL said, “The launch of the 'Made-in-India' Elevate as WR-V in Japan is a proud moment for all of us. This reaffirms our manufacturing potential and growing importance of Honda Cars India in Honda’s global business strategies."
Unveiled first as Honda WR-V in Japan in December, the Elevate with its bold design and strong road presence, outstanding space and comfort, and its advanced safety offering has come in for huge praise from its Japanese customers.
Besides Japan, HCIL has been exporting models in its line-up to left hand drive markets in Turkey, Mexico and Middle East and right-hand drive markets in Nepal, Bhutan, South Africa and SADC countries.
The Resurgence
In the past three years, HCIL undertook a number of steps to make its systems robust, its organisation lean and more efficient and its manufacturing state-of-art at its Alwar, Rajasthan-based plant. Today, the results are for everyone to see.
In FY23, riding on the back of record export numbers, and improved domestic volumes, HCIL saw a 14 per cent jump in its overall revenue to Rs 14,440 crore. For FY23, its net profit zoomed over 520 per cent to Rs 1,431 crore. This was the second consecutive year of profit registered by HCIL.
The carmaker posted its best ever exports volume of 22,764 units during FY23. This milestone has already been breached. For the data available from April 1, 2023 to February 29, 2024, HCIL has already exported 30,729 units. It has already surpassed the number of units produced between April 2023 and end of February 2024 compared to the full fiscal year 2022-23.
Even on the production front, HCIL has produced more units now 1,18,566 units (April 23-February 24), as compared to 1,06,687 units produced for the entire 2022-23. It shows the growing demand for brand Honda across its offerings. The dealer network stood at 325 facilities in 242 cities during the Financial Year 2022-23.
City of Success
Kunal Behl, Vice President, Marketing & Sales, HCIL as well as India spokesperson says, "At the core of Honda's success in India is the iconic Honda City, which has won over a loyal customer base. Through five generations of upgrades, the Honda City has seamlessly integrated advanced technologies, evolving to meet the changing demands of Indian customers, with over 9 lakh individuals choosing it as their preferred vehicle." By now, Honda City is inching closer to the million mark.
The Honda Amaze, with two generations, is another pillar of Honda's success in India, resonating with over 5.5 lakh customers thanks to its blend of style, comfort, and performance, says Behl.
The success of the Honda City, City e: HEV, Amaze and Elevate is a testament to the brand’s commitment to the India market. Today, India is an extremely important market for Honda’s global business contributing around 20 per cent from the A&O region and also a key export hub for the company, Behl adds.
What has clicked for Honda cars in India? Commitment to safety is one key component behind the success of Honda cars, says Behl. "Safety is a paramount concern for Honda, demonstrated by the integration of Honda Sensing and Advanced Driver Assistance Systems (ADAS) across almost all models at competitive pricing. This commitment to safety is just one aspect of Honda's dedication to providing exceptional products and experiences to its valued customers in India," he adds.
The Indian passenger car market has been experiencing a shift with a majority of customers now preferring to own and drive a SUV than a sedan. The success of Honda Elevate is the latest case in point. So, how does HCIL sees its sedans performing in coming times? "There is strong preference for SUV in the market, but we strongly believe that there are buyers who prefer sedans for their design, comfort and drivability. Sedan will continue to play an important role in HCIL’s line-up in future as well," Behl says with confidence.
Brand Overhaul
HCIL is deeply committed to delivering a premium customer experience, emphasising ease of ownership and leveraging digitalisation effectively. HCIL's vision, the company says, is closely aligned with its dealership network, which has embraced digitalisation to enhance the overall customer journey. "We have revamped our entire network, introducing a new corporate identity (CI) to elevate both the on-ground and online experiences. Through this new CI we have included a brand-new exterior design with bold and impactful logos offering a distinctive look so as to stand out in the urban environment," Behl shares. This initiative, he adds, is aimed at providing the ‘Joy of Buying’ to its customers as well as ‘Joy of Selling’ to the dealership staff, which is at the core of Honda’s philosophy and brand.
For those interested in pre-owned vehicles, Honda offers the option to explore Auto Terrace, its platform for certified pre-owned cars.
What about EVs?
The recent announcement of the ‘Honda 0 Series’ marks the debut of a new EV series, set to launch globally in 2026, with phased rollout planned across North America, Japan, Asia, Europe, Africa, the Middle East, and South America, Behl informs.
In line with its commitment to electric mobility, HCIL will also introduce a BEV SUV within the next three years. “We will also be working towards building a sustainable ecosystem for our EV models with our dealer partners. By 2030, HCIL will have a strong line-up of five new SUV (plus other models) which will further strengthen our position in the Indian market,” says Behl with a smile.
‘By 2030 we will have 5 SUVs’
Honda Cars India is growing every year, adapting to the market challenges. Kunal Behl, Vice President, Marketing & Sales, HCIL shares his take on the business in an exclusive chat with ASHISH SINHA. Excerpts:
What are Honda Cars India's strategic plans for 2024?
Our goal is to not only retain our valued customers but to significantly enhance their experience with us. To achieve this, we are placing a strong emphasis on the digitalisation of our processes across our entire network. We will further focus on enhancing the process in line with the current changing trends at all touch points. Our key focus, however, will remain on our strong business pillars; the Elevate, City, City e: HEV and Amaze.
How has Honda Elevate performed since its launch?
Our latest offering, the Honda Elevate, has been well received by customers across the country and we believe that it will further solidify its position in the market. It has also marked a key milestone for HCIL being the first model to be exported from India to Japan.
Can you describe Honda's journey in the Indian market so far?
Honda's journey in the Indian market spans over 25 years. The Honda City, City e: HEV, Amaze and the Elevate’s successes are testaments to the brand’s commitment to the Indian market. India is an extremely important market for Honda’s global business contributing around 20 per cent from the A&O region and also a key export hub for the company. At the core of Honda's success in India is the iconic Honda City, which has won over a loyal customer base. Through five generations of upgrades, the Honda City has seamlessly integrated advanced technologies, evolving to meet the changing demands of Indian customers, with over 9 lakh individuals choosing it as their preferred vehicle.
Could you provide more details on Honda's announced future product lineup?
We’ve announced plans for a Battery Electric Vehicle (BEV) based on the Elevate platform within three years. So, by 2030 our line-up will have five SUVs. Honda is committed to delivering products with cutting-edge technology, premium quality, and exceptional experiences for our customers.
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