ARUN BASSISUKRIT GUPTA

VIKALP GARGAJIT PAL

FOUNDER Soichiro Honda with a view personalmobility for every one!!

FOUNDED HONDA MOTORS IN 1948

Masahiro Takedagawa is President & CEO, Honda Siel Cars India Ltd. and Head - South West Asia, Honda Motor Co., Ltd.

Associated with Honda Motor Co. for over 25 years.

HONDA IN INDIAINCORPORATED IN DEC,1995JOINT VENTURE :HONDA MOTOR CO. LTD. & JAPAN AND SIEL LTD.

HONDA CITY INTRODUCED IN 1997

INVESTMENT MADE BY THE CO IN INDIA TILL DATE IS Rs1620 CR.

Rs 1000 CR. IS PLANNED IN 2ND PLANT IN RAJASTHAN.

MANUFACTURING CAPACITY 1LAC.SALES & DISTN. – 105 FACILITIES , 62 CITIES

Company DescriptionAutomotive

Manufacturers – Major

1. Automobiles2. Motorcycles3. Power Products4. Financial Services

HMC Sales Allocation Over the Past 9 Months

12%

81%

3% 4%

Motorcycles

Automobiles

Financial Services

Power Products

Honda is the World’s Largest motorcycle manufacturer but is most known for its automotive industry

CARSAccord

CRV

Civic

GENERATORS

EU1000iA 1000 watts, 120V

EU2000iA Camo 2000 watts, 120V

EU6500iSA 6500 watts, 120/240V

PROMOTIONHONDA promotes its

products through;Ads,billboards,tv,Sponsoring sports eventsCustomer serviceEnvironment friendly

automobiles

The 4 Types of International Marketing

Global marketing strategy(same everywhere)

Local marketing strategies(specific to each country or region)

Global tactics

Some tactics adapted locally

Mix of global & local tactics

Only local tactics & marketing mix

Pure Global Global « Glocal »

Pure Local

Bongrain : cheeses

Strengths

• Diversification.• World leader (Bikes).• Quality and customer satisfaction.• Competitiveness in innovative .• Pioneer in engineering low emissions internal combustion and hybrid technology.

Weaknesses

• Prices.• They do not have a strong offering in a truck line.• Reputation for being underpowered or pokey econo-boxes.

Opportunities

• Offering in a pickup type truck would be profitable.• Continue progressing low emission vehicles and alternative power sources.• Developing nations.

Threats

• Prices.• Technology.• New Markets.

Consumer Reports Top Automobile picks for 2006

Top Small Sedan Top Family Sedan Top Upscale Sedan Luxury SedanSUV Small SUV Top MinivanTop Pick-up TruckGreen Car Fun to drive

Honda CivicHonda AccordAcura TL (Honda)Infiniti M35 (Nissan)Toyota Highlander

HybridSubaru ForesterHonda OdysseyHonda RidgelineToyota PriusSubaru Imprezza

Additionally, Honda was 2nd overall in vehicle reliability right behind Lexus

Marketing/TechnologyThe new ACE System

(Advanced Compatibility Engineering)

5 star ratingHybrid EnginesASIMO Jet Engines ManufacturingNattokinase

Research and DevelopmentHonda currently has individualized R&D facilities

in Japan for motorcycles, automobiles, and power products, and a motorcycle R&D center in China for its increasing market demand.

HRI (the Honda Research Institute) is located in Japan, U.S., and Germany.

- Research focus on: robotics technology, automotive safety, ultra lightweight products, and fuel cell technology

- Deriving automotive fuel from plants.Honda also has networked facilities in the UK,

Germany and Italy (to help focus on the European market more independently)

Management Structure President and

Representative DirectorTakeo FukuiAge: 62

Executive Vice-President and Representative DirectorSatoshi AokiAge: 60

Promotion of Objective Management: Staff composed of 22 personnel. Two director positions and one

auditor assigned annually outside the company.Temporary directors are paid according to how well the

Company performs during their tenor.

Industry Trends Trend of Companies performing well in foreign markets, but not

domestically. GM: Dealing with Health care problems ($100B annually)

Sold GMAC Subsid. Filed for bankruptcy

Ford: $1.6B decline in car sales from years ending 04’ – 05’ Sold Hertz rentl car business

Chrysler: Changes management around Only U.S. manufacturer not in the red Also filed for bankruptcy Fiat had purchased some share in Chrysler

Volkswagen: high prices, low quality, plus labor force issues Toyota and Honda are prospering well in U.S. market Everyone looks to China for expansion

Pros and ConsPros: Fuel/ cost efficient products and technology Extensive R&D programs Superior Technology Moving towards differentiated product lines One of the few currently profiting companies in its industry Objective Management Structure Continuous increase in automotive sales in North America,

particularly U.S., and in Europe as well.

Cons: Fluctuation of Exchange rates, makes for inconsistent earnings Japan’s Economy Automotive industry very susceptible to interest rates Toyota may be a better buy

Questions

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