Honda Cars India Ltd - Critical Success Factors and External Factor Analysis Summary Company Background Honda Cars India Ltd. (HCIL) is a 100% subsidiary of the Honda of Japan. Production, marketing and export of passenger cars in India production facilities at Greater Noida in Uttar Pradesh and at Bhiwadi in Rajasthan Market share – approx 5.08% as of Aug 2013 (6th position in the passenger vehicles market) Product List HONDA BRIO HONDA AMAZE HONDA CITY Category : Hatchback Category : Sedan Category : Sedan Price Range : 4.15 to Price Range : 5.05 to Price Range : 7.30 to 6.15 lakhs approx 7.70 lakhs approx 10.60 lakhs approx Engine Type : Petrol Engine Type : Petrol Engine Type : Petrol and Diesel Product List - Contd HONDA ACCORD HONDA CR-V Category : Luxury Sedan Category : Premium SUV Price Range : 20.35 to 21.15 lakhs Price Range : 20.50 to 24.50 lakhs approx Engine Type : Petrol Engine Type : Petrol External Factor Analysis Summary External Factors Weigh Ratin Weighte Comments t g d Score Opportunities Increasing demand for Amaze is selling like hot cakes, new diesel diesel cars .15 2 .30 engine component production line installed at Bhiwadi plant VFM Offerings Brio and Amaze doing well, plans to re- /Competitive Pricing .15 3 .45 launch Jazz by next year. Hit the bulls eye with the pricing of Amaze and Brio, City prices were also slashed by approx 50000 in 2011 Growing market for compact SUV’s and .05 1 .05 No current product in the market, plans to MPV’s launch a compact SUV, a 7 seater MPV by 2015 Exports have become .10 2 .20 lucrative Plans to export over 6000 cars and approx 600 cr. worth of car components in this fiscal year (Exports : Brio – South Africa and 8 other African nations , City – Nepal, Bangladesh and Sri Lanka External Factor Analysis Summary External Factors Weight Ratin Weighted Comments g Score Threats Stiff competition in core .20 2.5 .50 City has emerged a cash cow segments Amaze is 2nd in its segment and catching up to the leader i.e. Dzire Brio is going steady in the hatchback segment Lower cost competitors .10 2.5 .25 Expanding its manufacturing in India – Rs 2500 cr. Investment plans at the new Bhiwadi plant , Reducing imports and stressing on localization Economic slowdown- .10 4 .40 Rupee depreciation 90% localization for Amaze and Brio , City has over 70% localization Local assembling for the new CR-V Petrol prices are soaring .15 2 .30 high Shifting focus to diesel cars with the ----------- _________ launch of Amaze , Prices slashed 1.00 2.45 for City, Brio and CR-V TOTAL WEIGHTED SCORE ------------ ________ _ .