Honda Amaze Penetrates Through Untouched Markets

Honda came out with an amazing solution for Indian market through the launch of entry-level sedan, the Amaze. This solution, purely Indian in all its characteristics, surprised rivals through a jaw-dropping price tag while the mileage of its diesel engine electrified the market. Amaze soon became talk-of-the-town for these two astonishing factors. Even before the launch the dealerships were flooded with bookings and demand management proved to be a major challenge for Honda. There were more tests for the company with the launch of EcoSport which happened in June, 2013. Automobile critiques expected that the EcoSport would take away limelight of Amaze. One month past the launch of this compact SUV and sales numbers show that both EcoSport and Amaze have done an outstanding job for their companies.

Honda has managed to sell 6,515 units of the entry-level sedan during July, 2013. In a market where most of its rivals are witnessing decline in sales volumes, Amaze has seen a growth of more than 31 percent when compared to its sales in June. Owing to the quality of products and the trust Honda has earned in India, the car is expected to continue its successful run in future.

Honda has always stood as a symbol of long-life and sophistication in Indian market. Having this brand image, the company was not quite successful in penetrating the market to great extent to take away the hot-cake. The Japanese auto major took its time to set the price right and to directly target the basic needs Indian consumer. Indians have always demanded for practical and fuel efficient cars and this time Honda managed to give them just that at the right price.

With pricing and mileage in place, it was not very difficult for Honda to threaten the market leader Maruti Suzuki Swift DZire. But with a shift in phase in Indian auto space there have been newer competitors for the sedan. The compact SUV – Ford EcoSport, with its stunning design and functionality, has mesmerised the audience. It carries three different types of engines and is available in multiple variants. Although the car looks simply superb, the mileage claimed by 1.5L diesel motor of EcoSport is lesser than that of Amaze. Honda’s diesel car beats the compact SUV in terms of power as well.

Another area of advantage for Honda over Ford is with the waiting period. Although there are three different engines in the options list for EcoSport, apart from one or two diesel variants most other cars have a waiting period of more than 8 months to 1 year. With such long waiting periods there are possibilities of dealerships losing customers. Although the production capacity of Honda is less the Amaze has a waiting period of around 2 months. The company has plans to ramp up production of this sedan which in future may shorten this period.

Amaze, basically targeted at growing markets like India, has been built to reach a different category of consumers when compared to other sedans from Honda like City and Civic. With an aim to penetrate through untouched markets, Honda has plans to expand its dealership network majorly in tier-II and tier-III cities. The company believes that about two third of sales of Amaze will be from these regions in future.

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