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Old 30th July 2014, 21:02   #1
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Thumbs down Honda stalls City production to accomodate Mobilio

Hi All,

I had booked a White Honda City VX - MT Diesel on 14th July 2014 and was promised a delivery of early October.

I finally got hold of the sales head at Ring Road Honda Sector 18 Gurgaon. He said that Honda has completely stalled the production of the City for August and September. The production would only begin in September end and they cannot deliver any cars before that. This is being done to accommodate for Mobilio's production. There will be no Honda City's manufactured in August and September 2014. This may push back the delivery of Honda City booked in july to as late as November end - early december.

I Hope Honda realizes the impact of this and may reverse this decision.

Mods - Please feel free to merge/delete this post in case there is an existing topic for the same.

Last edited by Alive2Drive : 30th July 2014 at 21:06. Reason: Change in topic
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Old 30th July 2014, 21:13   #2
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Default re: Honda stalls City production to accomodate Mobilio

Sad to know this news. To get hold of the mass market Honda is sacrificing on the sale of there quality product. The same happened when the Amaze was launched but later the demand of Amaze settled to a decent number. Before entering the mass market big players like Honda/Toyota/Ford should take a lesson or two from Maruti or Hyundai.

Last edited by Samba : 30th July 2014 at 21:21.
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Old 30th July 2014, 21:19   #3
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Default re: Honda stalls City production to accomodate Mobilio

Quote:
Originally Posted by Alive2Drive View Post
He said that Honda has completely stalled the production of the City for August and September.
My friend, that's not a rumor, that's true. Currently CITY was produced from Noida and now they are moving the plant to Bhiwadi and the CITY will be produced from there.
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Old 30th July 2014, 21:33   #4
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Default re: Honda stalls City production to accomodate Mobilio

On the contrary, I was under impression that Amaze & Mobilio will be produced in Rajasthan while City will continue in Noida.

I highly doubt Honda will gamble on their star product to push a new product.
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Old 30th July 2014, 21:41   #5
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Default re: Honda stalls City production to accomodate Mobilio

Quote:
Originally Posted by Alive2Drive View Post
I finally got hold of the sales head at Ring Road Honda Sector 18 Gurgaon. He said that Honda has completely stalled the production of the City for August and September. The production would only begin in September end and they cannot deliver any cars before that. This is being done to accommodate for Mobilio's production. There will be no Honda City's manufactured in August and September 2014. This may push back the delivery of Honda City booked in july to as late as November end - early december.
Really, Honda has lost it big time. To stop the production of it's well accepted model for a new model simply shows lack of planning and lack of proper production strategy on their part. I suggest take back your booking amount from them instead of making them earn interest on your money. Even when Maruti launched it's Dzire (1st Gen), it did not stop the production of it's other models for the sake of one.

Quote:
Originally Posted by Samba View Post
To get hold of the mass market Honda is sacrificing on the sale of there quality product. The same happened when the Amaze was launched but later the demand of Amaze settled to a decent number. Before entering the mass market big players like Honda/Toyota/Ford should take a lesson or two from Maruti or Hyundai.
Insecurity and rising competition has got Honda on their toes. They very well know that Ertiga has captured the market and enjoys a good customer base so to establish Mobolio in the market they are trying to produce it in large numbers as they think that it will be a "super-hit" right from day 1 of it's sale. Maruti knows the Indian market from the time when Honda was not even born in India so it prepares it's strategies accordingly and knows how, when and where to place it's line of cars. This well-researched approach of Maruti has been the formula of it's success.

Quote:
Originally Posted by Bubby View Post
My friend, that's not a rumor, that's true. Currently CITY was produced from Noida and now they are moving the plant to Bhiwadi and the CITY will be produced from there.
This is because the Mobilio shall be manufactured in Noida. Link: http://www.team-bhp.com/news/honda-b...-jazz-tapukara

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Old 30th July 2014, 23:16   #6
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Default re: Honda stalls City production to accomodate Mobilio

When i took the delivery on 14th July the SA told me i am lucky to get the July batch car as the City production will be halted in August to make way for Mobilio.
IMO its a wrong move and may cost Honda many sales.
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Old 31st July 2014, 09:51   #7
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Default re: Honda stalls City production to accomodate Mobilio

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Originally Posted by harry10 View Post
When i took the delivery on 14th July the SA told me i am lucky to get the July batch car as the City production will be halted in August to make way for Mobilio.
IMO its a wrong move and may cost Honda many sales.
Totally agreed, city is still doing on an average 7k sales per month. Granted the bookings will still continue, but a lot of people would not agree for this long a waiting period. Bad move Honda!
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Old 31st July 2014, 14:41   #8
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Default re: Honda stalls City production to accomodate Mobilio

Not the first time Honda India has done this.They stalled production of Jazz when Brio was launched.They killed Civic and Jazz prior to launching the new CRV and Amaze.
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Old 31st July 2014, 15:10   #9
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Default

Can confirm this. Visited solitaire Honda Borivali today to check the brio and I asked the SA about this. He confirmed that city production has been stopped for the mobilio.


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Old 31st July 2014, 15:11   #10
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Default re: Honda stalls City production to accomodate Mobilio

This news is to the same tune that my friend was told about his Honda City. But luckily, he got his car in the last batch allocated for the dealer. He was told that Mobilio production will be prioritized over City and the delivery time would be extended to two months.
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Old 31st July 2014, 16:35   #11
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Default re: Honda stalls City production to accomodate Mobilio

Visited a Honda dealer in Pune, SA confirmed that City production will begin only in September. HCIL is indeed betting big on Mobilio.
Best Wishes

Last edited by MunnabhaiMBBS : 31st July 2014 at 16:43.
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Old 31st July 2014, 16:44   #12
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Default re: Honda stalls City production to accomodate Mobilio

Its bound to happen due to the limited production capacity of Honda. And right now they are wise enough to understand that the City is already a best seller and a historically well appreciated car in India and hence people will tend to wait for it just like people waited for months together for Swift/Dzire ( Yes huge waiting periods due to production constraints is no alien thing for MSIL also). The Mobilio on the other hand is an all together new product and has to make its new segment and place in the market. Hence the focus on ensuring deliveries for it will obviously be more.
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Old 1st August 2014, 10:21   #13
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Default Re: Honda stalls City production to accomodate Mobilio

Kind of logical and I agree with Mohit. Moreover, you can't draw in a potential customer, make him pay two lakh over the Ertiga and still justify months together of waiting Hence Honda wants to keep customers out of any frustration caused due to long waiting periods for Mobilio.

On the other hand, it's unfair when we consider the state of the people who have booked the City. Perhaps they could have throttled the production of city and slowly ramped up the Mobilio production. It shows some overconfidence on Hondas part for sure.
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Old 1st August 2014, 10:58   #14
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Default Re: Honda stalls City production to accomodate Mobilio

Honda is indeed walking a tightrope. Imagine the scene if they had undercut the Mobilio prices below Ertiga.
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Old 1st August 2014, 11:21   #15
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Default Re: Honda stalls City production to accomodate Mobilio

What about those customers who had exchanged their cars in 'Auto Terrace' and booked City? Will Honda give them back their cars?
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