Will Honda’s new strategy work wonders for their sales or will they fail miserably?

If you’ve been on the news recently then you must have read that Honda Cars India have planned to revamp their entire sales network. The said revamp is planned to spread 3 years and would take an investment of up to Rs 270 crores. This step is in line with Honda’s plan to increase its customer experience and raise the brand value in India.

Having started its operation in 1995 in a collaboration with Usha International, Honda have come a long way in India. Their global namesake and top-notch products have allowed them to gain quite a foothold which is seen by the growth in sales numbers. However, when things are put into perspective, Honda Motors sales are often overshadowed by other competitors.

Why Honda is suddenly revamping its dealership network?

Here’s one telling fact, Honda has 3 names in the Top 25 most selling cars of 2018, while Maruti leads the way with 11, Hyundai with 4, Mahindra with 3 and Tata with 2. It’s often a telling fact, that although Honda has offered a plethora of cars under their portfolio, only City, Amaze and CR-V has been a hit in the market.  This new change in corporate strategy is expected to boost the presence of Honda in India and grow the sales figures ten-fold. Honda had kept the plans for revamp in the pipeline for over two years and now are initiating it nation-wide.

How will they proceed forward?

They will revamp and modernize the entire dealership network comprising of 350 dealerships in 239 cities of India with expansion plans for 70 odd new outlets in the next upcoming two years. It is estimated that the revamp for each dealership will require around Rs 60 lakhs to Rs 1.10 crores. They will bring a new color scheme to authenticate Honda as a premium brand along with clutter-free interiors and digital integration of new innovations. The dealerships will now be equipped with a 75-inch LED screen that will showcase video-driven explanations. Honda Cars India is also planning to have iWorkshop that will provide a more holistic approach towards the after-sales experience.

Will this strategy work for Honda?

Honda, one of the global giants definitely have higher ambitions, ambitions that will drive them into the top rank. But when it comes to executions, Honda has been facing a tough battle all along. This new strategy of Honda to bring in a premium touch, to harbor new digitalized platform to improve customer experience is all in line with them trying to grab the top spot. It remains to be seen whether this strategy will work or not for Honda. However, consumers are definitely in for quite a ride.

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Vivek Yadav

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