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

1. Automobiles 3% 4% 12%

2. Motorcycles Motorcycles
Automobiles
3. Power Products Financial Services
Power Products

4. Financial Services
81%

Honda is the World’s Largest motorcycle manufacturer but

is most known for its automotive industry
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
Global marketing strategy Local marketing strategies
(same everywhere) (specific to each country or region)

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

Pure Global Global « Glocal » Pure Local

Bongrain : cheeses
 Strengths Weaknesses

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

Opportunities Threats

• Offering in a pickup type truck would • Prices.

be profitable. • Technology.
• Continue progressing low emission • New Markets.
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 Hybrid
Small SUV Subaru Forester
Top Minivan Honda Odyssey
Top Pick-up Truck Honda Ridgeline
Green Car Toyota Prius
Fun to drive 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 Representative  Executive Vice-President and
Director Representative Director
Takeo Fukui Satoshi Aoki
Age: 62 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