[vikram_d]

Originally Posted by akshladha

Thats what these companies are trying. With new city loaded with localized parts, hence rightly priced, and GM and others approaching towards "made in India" tag, they are striving for less dependability. But then, people want better trim, better plastic finish for which u gotta depend on import qualities. Else like maruti, every other car would be blamed for poor build quality.

In my opinion the new City is still overpriced. And as far as technology goes we have amongst the best here. It's just that we don't care on using it for our own good. Half the automobile related industries I have seen are more interested in export orders than in local orders. Even if a Company like GM, Honda or Maruti approach them they hardly show any interest in those orders. BUt the very same companies when approached by GM or Honda for an export order will fall to knees and beg for those orders.

[car'zy]

Originally Posted by Sahil

CRV pricing if hiked as mentioned to the tune of 1.5 lakhs will give the Outlander a clear edge. The road tax on CKDs are much lower too so thats another feather thats already in HMs cap.

HM had hiked the prices of Outlander as well. (1st of 2nd week of November). They were the first ones and now Honda follows suit.

[GTO]

Out of curiousity, have some ex-Fiat dudes taken up senior positions at Honda?

Of late, they are making probably the worst management decisions in the industry. First was the recent Civic Hybrid debacle. Then, was the launch of the ANHC at a higher-than-expected price and WITHOUT crucial features (climate con, alloy wheels etc.). They haven't been able to get their dealers to pull up their socks on customer service either.

And now, in the midst of a weak economy, low consumer confidence & falling sales (2nd quarter was 30 - 35% down compared to '07), they want to raise prices!

Originally Posted by vikram_d

I wonder why this content has not been localized?

City recently launched, Civic has some level of localisation, Accord is 70% imported and the CRV a 100%.

[vikram_d]

Originally Posted by GTO

City recently launched, Civic has some level of localisation, Accord is 70% imported and the CRV a 100%.

I know, that is exactly my point. Does Honda really believe that India cannot manufacture cars like Accord and CRV or at least good quality parts for them. Or is it that Honda in India cannot manufacture those cars here? I very firmly believe that we have the capability available in India to manufacture whatever it is that is being imported for the Accord & Civic. Don't want to say anything about the CRV as it is CBU.

If they localize these cars to larger extent it will only help in bringing down costs and make them more competitive in the market.

[GTO]

Originally Posted by vikram_d

I know, that is exactly my point. Does Honda really believe that India cannot manufacture cars like Accord and CRV or at least good quality parts for them.

Volumes aren't enough for complete local manufacture; barely runs into a couple of hundreds (at best) per month. This is not relevant only to Honda. Most high-end cars have a dominating import content for precisely the same reason.

[vikram_d]

Originally Posted by GTO

Volumes aren't enough for complete local manufacture; barely runs into a couple of hundreds (at best) per month. This is not relevant only to Honda. Most high-end cars have a dominating import content for precisely the same reason.

I agree on the volumes front. But being in the manufacturing industry myself I have seen companies catering to all kinds of volumes. Different size companies cater to different kinds of volumes. My company for example is small scale company and I undertake only low volume orders. I do not the capacity at present for high volumes. I am sure there are plenty of companies like my own in India who can cater to low volumes.

[ImmortalZ]

Without volumes, they cannot justify the costs of setting up production of entire cars here. Either they need to make them here and export them all over the world (ala Hyundai), or share parts across ranges or brands (like FIAT/Suzuki MJD engines).

Even then, both the Civic and the NHC are 70-something % localized. I'm guessing the Accord sells way too slowly for producing it's comparatively complicated parts here (or finding Indian sources for them).

[car_crazy1400]

I don't think that Honda will increase the prices on their cars by upto 1.5 lacs. It seems more like a marketing ploy to me so that they don't have to offer any discounts on the stocks the already have with the dealers , due to the year end, as is usually the case with other manufacturers.

Sure, they will increase the prices, but not by the extent that they are claiming.

[nanopano]

[FONT=Times New Roman][SIZE=3]That’s really not good. But then I think that the company must have been forced by high inflation and weakening rupee to raise the price tags. Though its not good for Honda car lovers but the company has to make its own profit as well.[/SIZE][/FONT]

[GTO]

Originally Posted by vikram_d

I agree on the volumes front. But being in the manufacturing industry myself I have seen companies catering to all kinds of volumes.

Correct, but it's all about economies of scale & quality control. One mother plant that's creating a 100,000 ECUs a month is cheaper and easier to monitor (for quality) than 30 smaller plants making 3,000 ECUs each, and scattered across the globe.

[vikram_d]

Originally Posted by GTO

One mother plant that's creating a 100,000 ECUs a month is cheaper and easier to monitor (for quality) than 30 smaller plants making 3,000 ECUs each, and scattered across the globe.

True to a very large extent but with the kind of processes employed by JAP companies it is not very difficult for them to do the same with smaller companies. Maybe a little investment is required here but once that is done then it will be cheaper for them to source part locally. Even the investment is not exactly in terms of monetary value but in terms of time to identify the right vendors.

And before you say it, I know time is money.

@Immortalz - The Accord is built in India isnt it? Only a large number of components for it are imported. Right? I am just saying that they can localize more of the cars contents. This will make the car cheaper and their sales will grow.

[joshguy]

honda better watch out. there is a fierce competition between CRV,Outlander,and captiva.

If the price is hiked it will give way to captiva and outlander which has a diesel version.

Looks like the captiva has already picked us its market.

what happened to the much awaited CRV-D???

[ImmortalZ]

Originally Posted by vikram_d

@Immortalz - The Accord is built in India isnt it? Only a large number of components for it are imported. Right? I am just saying that they can localize more of the cars contents. This will make the car cheaper and their sales will grow.

Well, localizing a car = localizing it's components. Sure they can, but it doesn't make sense for them considering the low numbers it sells.

It's a Catch-22 really - localize parts, reduce prices, sell more. But you need to be selling more to justify local production. If they simply start using whatever is available here, their reputation for reliability will go down the drain.

[seby_v]

Originally Posted by ImmortalZ

Well, localizing a car = localizing it's components. Sure they can, but it doesn't make sense for them considering the low numbers it sells.

Won't the Accord and CRV sell more here if it commands a reduced price due to localization?

[metropolis]

Localisation would surely bring down the cost and numbers do increase but Honda and Toyotas enjoy their brand acceptibility even without that they continue to rule the market