ARUN BASSI

SUKRIT GUPTA
VIKALP GARG
AJIT PAL
FOUNDER Soichiro Honda with a view personal
mobility for every one!!

FOUNDED HONDA MOTORS IN 1948

Masahiro Takedagawa is President & CEO,
Honda Siel Cars India Ltd. and Head - South
West Asia, Honda Motor Co., Ltd.

Associated with Honda Motor Co. for over 25

years.
HONDA IN INDIA
INCORPORATED IN DEC,1995
JOINT VENTURE :HONDA MOTOR CO. LTD.
&
JAPAN AND SIEL LTD.

HONDA CITY INTRODUCED IN 1997

INVESTMENT MADE BY THE CO IN INDIA TILL
DATE IS Rs1620 CR.
Rs 1000 CR. IS PLANNED IN 2ND PLANT IN
RAJASTHAN.
MANUFACTURING CAPACITY 1LAC.
SALES & DISTN. – 105 FACILITIES , 62 CITIES
Company Description
Automotive
Manufacturers – Major HMC Sales Allocation Over the Past 9 Months

2. Automobiles 3% 4% 12%

3. Motorcycles Motorcycles

4. Power Products
Automobiles
Financial Services
Power Products

5. Financial Services
81%

Honda is the World’s Largest motorcycle

manufacturer but is most known for its
CARS
Accord

CRV

Civic
GENERATORS
EU1000iA
1000 watts, 120V

EU2000iA Camo
2000 watts, 120V

EU6500iSA
6500 watts, 120/240V
PROMOTION
HONDA promotes its
products through;
Ads,billboards,tv,
Sponsoring sports events
Customer service
Environment friendly
automobiles
 The 4 Types of International
Marketing Local marketing
Global marketing
strategy strategies
(specific to each country or
(same everywhere)
region)

Only local
Some tactics Mix of
Global tactics &
adapted global &
tactics marketing
locally local tactics
mix

Pure Global Global « Glocal  Pure Local

»

Bongrain : cheeses
 Strengths Weaknesses

• Diversification.
• World leader (Bikes).
• Quality and customer
satisfaction.
• Competitiveness in
innovative .
• Pioneer in engineering low
emissions internal
combustion and hybrid
technology.
Opportunities
• Prices.
• They do not have a strong
offering in a truck line.
• Reputation for being
underpowered or pokey
econo-boxes.
Threats

• Offering in a pickup type truck • Prices.

would be profitable. • Technology.
• Continue progressing low • New Markets.
emission vehicles and alternative
power sources.
• Developing nations.
 Consumer Reports Top Automobile picks for 2006

Top Small Sedan Honda Civic

Top Family Sedan Honda Accord
Top Upscale Sedan Acura TL (Honda)
Luxury Sedan Infiniti M35 (Nissan)
SUV Toyota Highlander
Small SUV Hybrid
Top Minivan Subaru Forester
Top Pick-up Truck Honda Odyssey
Green Car Honda Ridgeline
Fun to drive Toyota Prius
Subaru Imprezza
 Additionally, Honda was 2nd overall in vehicle reliability right behind
Lexus
Marketing/Technology
 The new ACE System
(Advanced Compatibility
Engineering)
 5 star rating
 Hybrid Engines
 ASIMO
 Jet Engines Manufacturing
 Nattokinase
Research and
Development
Honda currently has individualized R&D facilities
in Japan for motorcycles, automobiles, and power
products, and a motorcycle R&D center in China
for its increasing market demand.
HRI (the Honda Research Institute) is located in
Japan, U.S., and Germany.
- Research focus on: robotics technology, automotive
safety, ultra lightweight products, and
fuel cell technology
- Deriving automotive fuel from plants.
Honda also has networked facilities in the UK,
Germany and Italy (to help focus on the European
market more independently)
Management Structure
 President and  Executive Vice-President
Representative Director and Representative
Takeo Fukui Director
Age: 62 Satoshi Aoki
Age: 60

Promotion of Objective Management:

Staff composed of 22 personnel. Two director positions and one
auditor assigned annually outside the company.
Temporary directors are paid according to how well the Company
performs during their tenor.
Industry Trends
 Trend of Companies performing well in foreign markets, but not
domestically.
 GM: Dealing with Health care problems ($100B annually)
 Sold GMAC Subsid.
 Filed for bankruptcy

 Ford: $1.6B decline in car sales from years ending 04’ – 05’
 Sold Hertz rentl car business

 Chrysler: Changes management around

 Only U.S. manufacturer not in the red
 Also filed for bankruptcy
 Fiat had purchased some share in Chrysler

 Volkswagen: high prices, low quality, plus labor force issues

 Toyota and Honda are prospering well in U.S. market
 Everyone looks to China for expansion
Pros and Cons
Pros:
 Fuel/ cost efficient products and technology
 Extensive R&D programs
 Superior Technology
 Moving towards differentiated product lines
 One of the few currently profiting companies in its industry
 Objective Management Structure
 Continuous increase in automotive sales in North America,
particularly U.S., and in Europe as well.

Cons:
 Fluctuation of Exchange rates, makes for inconsistent earnings
 Japan’s Economy
 Automotive industry very susceptible to interest rates
 Toyota may be a better buy
Questions