Honda Cars might collaborate with its 2-wheeler dealers

Honda is looking to collaborate with its 2-wheeler dealer partners in an attempt to increase its car sales in India. Honda wants to take advantage of the market reach and dealer network of its 2-wheeler arm in order to reach more customers in rural areas.

At present, Honda Car India is the fifth largest car maker in India behind Maruti Suzuki, Hyundai, Mahindra and Tata Motors. It has 348 showrooms spread across 233 cities in the country. The brand's market share stood at 5.3 percent in the April-June 2017 quarter. The company is aiming to increase its market share to 10 percent over the next five years. 

On the other hand, Honda Motorcycle & Scooter India has a total of 5,379 dealerships, branches and sub-branches. Its market share stands at 30 percent. It is the largest manufacturers of scooters and the second largest manufacturer of motorcycles in the country behind Hero MotoCorp. 

Honda 2-wheeler dealers who sell with profit can reinvest in Honda's car business. Honda follows a similar strategy in other markets of the world where two-wheelers and cars are managed under one company. In India, the two-wheeler and car businesses were setup as individual entities after both split up from their joint-venture partners.

Source: ET Auto