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back to index backASIAtalk August,  2012


India Automotive Monthly: Executive Summary (June 2012)

Honda’s Downsizing Strategy.

Honda appears to have embarked on a new downsizing strategy across its model range. The approach began with the development of an all-new small car platform for emerging markets that culminated into the production of the Brio hatchback in 2011. Sitting below its popular Jazz hatch, the Brio has won new first-time buyers for Honda in Thailand and India.

The Brio made its world debut in Thailand with the roll out of the first model in May 2011. India followed not far behind with production starting in September – a few months delay following the devastating earthquake and tsunami in Japan. As if this was not already bad, yet another natural disaster in the form of severe flooding in Thailand hit Honda.

Its main manufacturing unit in Thailand’s Ayutthaya province was inundated last October, forcing slowdowns and shutdowns across its other facilities in the region. Needless to say, sales suffered as the inventory of kits and components dried up and production came to a standstill.  Honda’s Thailand operation has since started supplying kits and components to India, with output at Honda’s New Delhi plant normalizing in February 2012. As a result, the Brio is only now realizing its full potential in India, with monthly sales ranging between 2,000 and 3,000 units.

Honda’s downsizing strategy will continue with the Brio Saloon – the sedan version of Brio – expected to be in the market in 2013. Like its hatch counterpart, Brio Saloon will first be marketed in Thailand, with India to follow by the fourth quarter just before the start of the festival season.

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Source: LMC Automotive - GAI








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