Honda experiencing unprecedented level of demand in festive season

Monday 28 October 2013, 12:11 PM by

A lot of hopes had been pinned by auto makers on this year’s festive season to stage a revival in terms of sales. However, things are looking glum and disappointing for most companies, reports have claimed. It is being said that dealerships and showrooms across the country have not seen any sort of rush or customer influx, which is a usual case during this time of the year. Auto makers like Ford, Tata Motors, Mahindra & Mahindra, Nissan and Toyota are experiencing a poor response, despite the ongoing festive season. Circumstances are quite reflective of what has been happening in 2013 for the Indian car market, i.e. slow demand, inventory pile-up and constantly dipping sales.

Honda experiencing unprecedented level of demand in festive season | CarTrade.com
Honda experiencing unprecedented level of demand in festive season

Statistics suggest that companies are trying to figure out how to clear their stock along with battling poor capacity utilisation. Ironically, one firm seems to be making merry while everything around it, is otherwise. According to reports, Japanese car maker Honda is experiencing the time of its life in India as there is an unprecedented level of rush at its showrooms al over the country. While this has been, possibly, the worst Diwali for the Indian auto market in about a decade, Honda is experiencing the exact opposite. A top official from the firm claimed that Honda’s production facilities are going through a tough time due to the extremely high demand. In addition, showrooms are battling with high customer attendance and containing them with really long waiting periods.

In fact, as surprising it may seem, but the Japanese car maker has had to handle production shortage, something that is unimaginable considering circumstances that encompass market in India. Honda is planning to add a third shift at its production facilities in November, if reports are to be believed. This is due to the fact demand for Honda cars, according to sources, is twice as much as it was in the corresponding period in 2012. Amaze, the sub-4 metre compact sedan, reportedly, has a back log of about ten weeks, implying the kind of success it has achieved. Brio hatchback, on the other hand, has a modest back order period of around 15 days, quite less as compared to Honda’s compact sedan. Industry experts have marvelled at the kind of progress and performance shown by Honda in times during which even the best have been bogged down.

The Japanese car maker, literally, is having a bright, prosperous and cracking Diwali in 2013 while others are experience the exact opposite. Analysts feel that Honda has done a tremendous job in establishing this sort of pedigree in the Indian car market. Till a couple of years back, the firm was going through a torrid time as there was utter chaos in its operations. Due to the lack of a petrol model in its portfolio and rice in fuel prices, demand for Honda cars went pretty low. However, this is where Honda’s resilience came to the fore and the firm embarked on a massive redevelopment program, the result of which can be seen at the moment. Reportedly, Honda invested huge amounts in setting up a research and development centre along with the implementation of right strategies. Also, the introduction of Amaze took things to another level as the car got an unprecedented response for its superb engine and aggressive pricing.