Honda City

Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint venture between Honda Motor Co. Ltd., Japan and Siel Limited, a Siddharth Shriram Group company, with a commitment to providing Honda’s latest passenger car models and technologies, to the Indian customers.

The Honda City was launched in the Indian Market in year 1997 and since then it is being one of the remarkable brands. Honda City is one of the best performing cars in the mid luxury segment.  It is the luxury at an affordable price was the point of difference for Honda City. Honda City is known for its regular innovation be it placement of fuel tank under the front seat rather than the norms of placing it under the rear seats.

According to the J.D. Power Asia Pacific Reports, HONDA CITY ranks first in its segment for the customer satisfaction. Honda has segmented the market for Honda city on the basis of demography. When Honda city was launched in the Indian market, it was targeted at youth who were stylish and admire technical stylish features like stylish interiors, dashboard, mobile chargers etc.

Honda city has strong brand equity as in the luxury segment car. Honda city has a strong customer base. In fact this is one of the opportunities for Honda city is to start targeting now small towns and cities as most of its communication is for urban population of metros and Tier-A cities.

Honda has tried all sorts of sales promotion to boost the sales of Honda city like offering free gifts like stereos with every car, organizing road shows and offering free test drives. Honda believes in strengthening the customer relationship and good service quality is one of its strong POD (Point of Difference) to maximize the Customer Lifetime Value(CLV).

Honda adopted Flank Attack Strategy by launching HONDA CIVIC to compete with the competitive models like Toyota Camry and Hyundai sonata.

Honda revitalized its brand by innovating every other time. It launched an improved version of Honda city in 2002 which was more fuel-efficient along with new stylish looks. This measure was taken keeping the fuel prices in mind. Brand extension was also done by introducing the diesel and CNG variants.

It would not be surprising if Honda city launches its products in all segments so as to offer strong competition to its competitors.