Honda Cars India Ltd - Critical Success Factors and External Factor Analysis Summary

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)

Product List

HONDA BRIO Category : Hatchback Price Range : 4.15 to 6.15 lakhs approx Engine Type : Petrol

HONDA AMAZE Category : Sedan Price Range : 5.05 to 7.70 lakhs approx Engine Type : Petrol and Diesel

HONDA CITY Category : Sedan Price Range : 7.30 to 10.60 lakhs approx Engine Type : Petrol

Product List - Contd

HONDA ACCORD Category : Luxury Sedan Price Range : 20.35 to 21.15 lakhs approx Engine Type : Petrol

HONDA CR-V Category : Premium SUV Price Range : 20.50 to 24.50 lakhs Engine Type : Petrol

External Factor Analysis Summary

External Factors Weigh Ratin t g Weighte d Score Comments

Opportunities
Increasing demand for diesel cars .15 2 .30 Amaze is selling like hot cakes, new diesel engine component production line installed at Bhiwadi plant Brio and Amaze doing well, plans to relaunch 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 by 2015 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

VFM Offerings /Competitive Pricing

.15

.45

Growing market for compact SUVs and MPVs Exports have become lucrative

.05

.05

.10

.20

External Factor Analysis Summary

External Factors Threats
Stiff competition in core segments .20 2.5 .50 City has emerged a cash cow Amaze is 2nd in its segment and catching up to the leader i.e. Dzire Brio is going steady in the hatchback segment Expanding its manufacturing in India Rs 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 .15 ----------1.00 -----------2 .30 _________ Shifting focus to diesel cars with the launch of Amaze , Prices slashed for City, Brio and CR-V

Weight

Ratin g

Weighted Score

Comments

Lower cost competitors

.10

2.5

.25

Economic slowdownRupee depreciation

.10

.40

Petrol prices are soaring high

TOTAL WEIGHTED SCORE

2.45 ________ _