FOUNDER Soichiro Honda with a view personal mobility 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 INDIA
INCORPORATED IN DEC,1995
JOINT 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 2 ND PLANT IN RAJASTHAN.
MANUFACTURING CAPACITY 1LAC.
SALES & DISTN. – 105 FACILITIES , 62 CITIES
Automotive Manufacturers – Major
Honda is the World’s Largest motorcycle manufacturer but is most known for its automotive industry
1000 watts, 120V
2000 watts, 120V
6500 watts, 120/240V
HONDA promotes its products through;
Sponsoring sports events
Environment 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
World leader (Bikes).
Quality and customer satisfaction.
Competitiveness in innovative .
Pioneer in engineering low emissions internal combustion and hybrid technology.
They do not have a strong offering in a truck line.
Reputation for being underpowered or pokey econo-boxes.
Offering in a pickup type truck would be profitable.
Continue progressing low emission vehicles and alternative power sources.
Consumer Reports Top Automobile picks for 2006
Top Small Sedan
Top Family Sedan
Top Upscale Sedan
Top Pick-up Truck
Fun to drive
Acura TL (Honda)
Infiniti M35 (Nissan)
Toyota Highlander Hybrid
Additionally, Honda was 2 nd overall in vehicle reliability right behind Lexus
The new ACE System (Advanced Compatibility Engineering)
5 star rating
Jet Engines Manufacturing
Research and Development
Honda 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)
President and Representative Director
Executive Vice-President and Representative Director
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.
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 Cons
Fuel/ cost efficient products and technology
Extensive R&D programs
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.
Fluctuation of Exchange rates, makes for inconsistent earnings
Automotive industry very susceptible to interest rates