[sramanat]

This is a step in the right direction for Honda. Quick turnaround time is the key. A raised City is probably all they need to compete in the 4m+ 5 seater and 7 seater segments. At a price of City + 2 lakhs, it will fall right into the current Seltos/Creta/Kushaq pricing mix. A lot of people would want the understated Honda looks, perceived reliability and the tested IVTEC/IDTEC engines. With the certain disappearance of Ecosport and some careful tech updates and an AT option, the WR-V can gain traction in the sub-4m space too. 2 petrol + 2 diesel + 2 transmission options spread across 6 models (a hatchback, 2 sedans and 3 SUVs) sounds like a good product mix on paper and can help share a lot of costs. However they should be careful that the new SUV doesn't look like a van (like how BR-V did) and must have a taller stance.

As mentioned by others above, the timeline is a cause to worry. Does Honda have cars brought in as CBU or assemble them here as knocked down kits? I don't think so. While they work on newer models/localization of foreign models, they should bring in some of the SUVs from foreign markets and gauge people's interest/feedbacks. This will also contribute to the halo effect and when the eventual localized SUVs hit the market at an uncompetitive price, the market will be sensitized to that. Like how Skoda did with the Kodiaq (or was it Karoq?) and Kushaq.

[Kosfactor]

Meanwhile Honda is trying to invoke some kind of Nostalgia in the form of projector Headlamps. Bookings open fellows.

https://www.youtube.com/watch?v=2DQH0mlxLPg

[abhishek46]

Originally Posted by sramanat

This is a step in the right direction for Honda. Quick turnaround time is the key. A raised City is probably all they need to compete in the 4m+ 5 seater and 7 seater segments.

Just some minor modifications could change the fortunes of the City:
1. A 10mm raise in ground clearance
2. A 'trimming' of the overtly long front overhang,
3. A slightly firm-er ride at the back, to fix the wallow at high speeds.

[Dead_Pedal]

Made for India SUV confirmed to be under build. A good two years away though. Honda India running like a mail train.

https://www.thehindubusinessline.com...71653.ece/amp/

[Venkatesh]

Honda cars India registered a net loss of Rs 1,588 crore for the fiscal year ended March 31, 2021. In the previous fiscal 2020, the manufacturer of the Honda City had posted a net loss of Rs 1,680 crore.

Revenue in fiscal 2021 fell by over 11% to Rs 9,624 crore. The company took a Rs 463 crore charge on the voluntary separation scheme offered to employees at its Greater Noida plant, which has been shut down. Accelerated depreciation was Rs 587 crore.

In the past five years, the company has posted a loss in three — besides FY20 and FY21, it posted a Rs 2,272 crore loss in FY17.

Source

[sumeethaldankar]

I hope Honda does not do a Ford or a GM. They still have hope and potential. They have to just get few things right. The new City is a decent seller. IMHO they need to see what they did right with the City and what went wrong with their other cars and take it forward from there.

[dr_TJ]

Honda might end up as the next Chevrolet or Ford if it continues to incur loss year after year.
Just like Ford was hung up with one good selling model, Ecosport. Honda is also hung up on the City.
I seriously hope, Honda don't end up leaving India but things don't look good at this rate.

After going through my Ford headache, I won't have the courage to go and buy myself a Honda car now or of any Manufacturer who is having low sales and is hung up on one model, also with no exciting releases in the pipeline.

Let's hope Honda make a proper attempt to gain back its market share

[chittybang]

Frankly, I am surprised that Ford folded before Honda. This is despite owning the City. They don't seem interested in our market. Infact they look confused. Reintroducing the Civic and CRV sort of made me feel they will atleast try to hang in there
They sadly reverted back to keeping City as their top end vehicle when the entire market moved to SUVs.

They may be hoping to find their feet once hybrids and EVs grab a decent market share. As usual they won't take any risk and will wait for someone else to create the segment and then try their luck hoping we will rush back to buy brand Honda. I am sure they will succeed to some extent as well.

[msdivy]

A decade back Honda showroom had a 30L Accord, CR-V & Civic with people hoping Acura brand to be launched. But Honda was then busy showcasing Asimo and now are down to 4 models starting with Amaze (6.5L) to City (11.5L) with WR-V & Jazz in between. They are trying to be a premium player in the value segment. They had a hit with City and missed every opportunity since then, be it a premium hatchback (i20), compact sedan (Dzire), compact SUV (Ecosport), or crossover (Creta, Seltos). The truth is Honda India is not able to build a car for the Indian market. What I mean is, Honda can never build a Creta-like vehicle at the same quality & price as Hyundai. Hence Creta does more than the entire number of Honda.

Originally Posted by Venkatesh

Honda cars India registered a net loss of Rs 1,588 crore for the fiscal year ended March 31, 2021.

If they had not launched Civic, the losses would been down. All they had to do is spend 5 minutes reading the D-segment thread on T-BHP.

[eccentric]

IMHO, if Honda ends their innings as Ford did, I wouldn't be surprised at all. I say this again, they would save themselves from further embarrassment that lies ahead by shutting shop.

With market evolving more ruthlessly than ever, Honda wouldn't hold a candle even if they bring in their stupid development like BRV. High spares cost, poor paint quality, squeaks and rattles, frequently persihable rubber components, non robust suspension, incompetent and lazy ASCs, Honda proudly wears these traits as badges of honor for running their business in India. No wonder it clearly reflects in the losses piling up.

If anyone from Honda is reading this, below are what it takes to revive the brand back again,

1. Prune your Dealers
The MS Arena showroom is well maintained than the Honda showroom in my location. We, Indians feel there is a snob value that a Honda product commands. But your dealers feel the opposite. Trust me, I've got excellent reception and support in the Yamaha Service Center for my R15 V3. But servicing my Civic at Southern Honda, Tirunelveli has left a lasting bitter experience that still lingers on. Take complete control over your ASC, they're tarnishing your image!

2. Rejig the product lineup
The yesteryear Hondas' were aspirational purchases. Competing against entry level mass market products has really diluted the brand and the novelty factor attached, has fell off. Discontinue your low volume sellers like Jazz/ WRV and bring in the Vezel and Civic with the same international standards sold abroad. Also, spoil the consumer with choices offering strong variant line ups with proper engine and transmission combos. Don't mess it up like you did in the 10th gen Civic!

3. The Turbo petrol Era
It's a shame to see you still carrying on with NA while even the home grown manufacturers like Tata and Mahindra have introduced Turbo petrols. Bring this first and then we'll talk about EV!

4. Reducing the spare costs
Hondas are becoming expensive to maintain in the longer run due to the exorbitant price tags of the spares and the gluttony of the ASC. While your service manual states to replace the part, the ASCs were hell bent to replace the assembly! Also, the lead time taken for procuring a spare is high say 2 months in my case. Indians love the quality of service and wasn't this revealed by the sales figures of Innova and Fortuner?

5. Sense of Uniqueness
Sharing class C items like switches, machined components across models are quite common practice and I don't complain. But plastering the dashboard of CRV to an Amaze is just lame and pathetic and so is the same for Jazz and WRV! Again, don't dilute your international standards when it comes to India by offering tinny sheet metals, lean thickness paint coatings, poorly screwed together assemblies and glitchy ICE!

India needs new product launches and not cosmetic surgery facelifts.

"You're a kite dancing in a Hurricane, Honda. So Long..."

[achyutaghosh]

Originally Posted by eccentric

1. Prune your Dealers

2. Rejig the product lineup

3. The Turbo petrol Era

4. Reducing the spare costs
5. Sense of Uniqueness

All these are great points. IMO to put these strategies in place, Honda requires 4 things-

1. Global alignment- how much to focus on India given the skewed market structure? Like Ford, Honda has been in India for 20 years and all it has is for its efforts is low single digit market share. Koreans today do better versions of Japanese cars.

2. Tons of money- Honda's global operating profits are still 15-20% below 2018 levels. Investing in India for products, marketing, branding, vendors and ecosystem will require lot of resources. Given the upcoming electric age, do they have the resources to spend in India?

3. Long term committment- Does Honda even have a long term committment plan for India? Hlaf hearted India strategies do not work. We have seen that with GM, Ford etc.

4. Humility- Arrogancy has been the mark of Honda. How do you double down and customize your attitude to market conditions

Honda is a great brand with excellent products well suited to India. My 2010 Honda city gave me an absolutely fuss free experience. But somehow i feel these 4 things are lackking for them.

[CarNerd]

Honda should exit India as early as possible if it doesn't launch it's global models like Civic, Accord, CRV, etc here. If the luxury players like Audi, BMW, Mercedes can sell a small number of cars compared to mass market players and still stay, what's wrong with Honda? All they have to do is to maintain good quality like they do in other countries, have good service network and give plenty of options to choose from. I know this calls for a large investment but that's how selling cars work. They aren't selling biscuits! They should sit down and think about making some models here and importing CKDs of others by planning potential sales of each model. They should also spend more on advertising. I see the Amaze ad but don't remember the latest gen Honda City Ad while Hyundai/Kia are constantly bombarding us with their ads. They haven't tried hard to succeed in the market in my opinion.

[kiku007]

I guess it is just a matter of time before Honda exits India.

Ford's exit must make it easier for the others like Honda to follow suit.

[SulemanP]

Honda should take the same route as Suzuki & Toyota if they really want to stay in the Indian market. That will give them some hope in near future as the government has introduced a slew of initiatives bringing a drastic change in the automobile industry.

[for_cars1]

Honda - Please don't go the Maruti or Toyota way and sell sub standard products (read: with heavy cost cutting) to Indian customers. We don't deserve second class treatment from OEMs with the thought process "this much should be more than enough for you guys"

I'm really thankful to Honda -nothing in our market currently beats the City and Amaze in their respective categories. Please strive for the same in all vehicle classes. No cost cutting to achieve this please.

Please go by the path shown by Indian manufacturers such as M&M and Tata ie., to offer the best (eg: 5 star safety and world class features and power at competitive and reasonable prices).
Hyundai has also been practising this philosophy by offering Indian customers with Internationally standard/global products, but recently M&M and Tata have overtaken Hyundai in offering good products here.