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Old 31st July 2009, 13:54   #1
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Default Carnation Auto (Jagdish Khattar) sells Honda parts cheaper. EDIT: Tie up with DC

So this is good news for all Honda owners, but for how long? We'l have to wait and watch

Read in today's ET, Jagdish Khattar's new firm, Carnation Auto has started importing original Honda parts at a cheaper price using the Free Trade Agreement with Thailand.Khattar stated thy some components were imported on a trial basis.To counter this, Honda is planning to register it's trademark in India for auto components and is moving it's Thailand unit to halt supplies to Carnation auto.Honda hasn't raised any issue with Carnation auto so far.

However, Honda Siel can restrict imports besides controlling the distribution channel.

Khattar is aiming at a Rs.75 crore turnover this year in the component biz alone

Last edited by rg_chn : 31st July 2009 at 13:57. Reason: On mobile, hence few typos
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Old 31st July 2009, 14:07   #2
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Would such a step by Honda not amount to a restrictive trade practice.
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Old 31st July 2009, 14:10   #3
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Would such a step by Honda not amount to a restrictive trade practice.
It would, JK bought the components and have paid what is required to Honda
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Old 31st July 2009, 14:15   #4
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thats a good news and if this really happens then what i see is the monopoly of honda,toyota,skoda dealers might be shattered as then mr,JK would supply those parts at affordable rates then dealers across nation.
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Old 31st July 2009, 14:26   #5
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I guess if Honda registers it's trademark for auto components in India, they will be sold only through authorized dealers.

I don't see why Hpnda should do that, reasons being,
A. Not everyone will be buying parts from Carnation, we do have quite a lot of people who still believe in giving their cars only at the ***, which buys parts from HMI
B. Carnation is anyway buying parts from Honda Thailand, so Honda's still making their share of money.

I agree it does erode HMI's profit, maybe Honda should price their spares rightly.
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Old 31st July 2009, 14:31   #6
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That's good news! At least this will help in lower costs of Honda parts. I'm sure the dealers won't like this. I guess that's why Honda is not too thrilled.

But I'm glad someone tried this.
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Old 31st July 2009, 14:37   #7
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It's good local honda parts will be available specially to me, my warranty is expired and can't be extended.
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Old 31st July 2009, 14:40   #8
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I agree it does erode HMI's profit, maybe Honda should price their spares rightly.
In the ideal world - HMI would compete with him by matching his prices.

In the real world - HMI will probably try every trick in the book to ensure that it maintains its higher margins on the spare parts by discrediting his business model.
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Old 31st July 2009, 14:40   #9
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what "components" are we talking about here ?

most parts are available in the market from the OEM suppliers themselves . for e/g mungal showa shocks used by HONDA are available freely in the market.

also lets not assume, Jagdish Khattar is going to offer these parts to us at a discount to HONDA prices. they may just be for usage in the upcoming 3rd party service centers he is putting up.
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Old 31st July 2009, 14:45   #10
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I think the biggest issue for Honda will not be just restricted to spares sales, once their parts are available in the open market, other service centres can start servicing Honda cars, customers will not have to rely on Honda A$$ for labour or spares.
Most dealerships thrive on After Sales Service rather than car sales, lack of spares availability elsewhere means customers have to stick to authorised service centres and their high rates. Hopefully this initiative will provide customers a more affordable alternative.
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Old 31st July 2009, 14:58   #11
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Why whats wrong?. when jk has paid the cost of spares in thailand and also paid import duties and still can supply parts at cheaper rate , it clearly means honda siel is fooling customers and selling spares at a premium rate.

I believe even if he has not paid import duties due to free trade between thailand and india agreement it still it holds good and parts are available at subsidised cost which are good for customers........

Honda must take a cue for jk and subsidise the price of the spares
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Old 31st July 2009, 15:00   #12
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I think the biggest issue for Honda will not be just restricted to spares sales, once their parts are available in the open market, other service centres can start servicing Honda cars, customers will not have to rely on Honda A$$ for labour or spares.
Most dealerships thrive on After Sales Service rather than car sales, lack of spares availability elsewhere means customers have to stick to authorised service centres and their high rates. Hopefully this initiative will provide customers a more affordable alternative.

other service centers can and have been servicing HONDA cars for quite long. not many HONDA owners take them there - thats another matter.

its only some very critical parts ( maybe engine/transmission related ) that may not be available in the open market. rest all is there
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Old 31st July 2009, 15:04   #13
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I always felt Honda was hypercharging its customers in India.Jagdish Khattar's efforts of supplying the spares at cheapers rate shows that Honda has over priced its parts too.Honda should act fast and reduce the cost of the parts immediatly.Thats the only way.
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Old 31st July 2009, 15:09   #14
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Spares through independents are invariably at least 25% cheaper and can be procured through good spare dealers. It may take a few days. the crux comes in the service documentation which is guarded very closely (in my view illegally) by the company-dealer duo.

May Haynes become widely available!!
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Old 31st July 2009, 15:18   #15
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Quote:
Originally Posted by sgiitk View Post
Spares through independents are invariably at least 25% cheaper and can be procured through good spare dealers.
But wouldn't this lead to the flourishing of fake parts as more and more smaller outfits try to emulate JK?
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