PROJECT ON HONDA SIEL CAR INDIA Ltd. Submitted to: Mr. Rahul Mishra Prepared by: Abhishek Gupta (4) Anand Bhardwaj (12) Mannu Gupta (35) Sahil Taneja (88) Utsav Puri (79) {Sec-C} Honda Siel Cars India Ltd. (HSCI) was incorporated in December 1995 as a joint venture between Honda Motor Co. Ltd. (Japan) and Siel Limited, with a commitment to provide Honda’s latest passenger cars and technologies to the Indian customers. The Honda City, its first offering introduced in 1997, revolutionized the Indian passenger car market. The total investment made by the company in India till date is Rs. 1620 crores, further investment of Rs. 1000 crores is planned. Manufacturing Unit HSCI’s state-of-the-art manufacturing unit was set up in 1997 at Greater Noida, U.P with an investment of Rs. 450 crores. The initial installed capacity of the plant was 30,000 cars per annum, which was thereafter increased to 50,000 cars on a two-shift basis. The capacity has further been enhanced to 1,00,000 units annually in February 2008. The company has recently opened Phase I of its new plant in Rajasthan. This plant has a capacity of 60,000 cars per annum. Product Range • Honda City ZX in the mid-size segment, • Civic & Civic Hybrid in the Lower D segment, • Accord in the luxury segment & • CR-V in the SUV segment. While the City ZX, Civic and Accord are manufactured at the company’s plant, the CR-V & Civic Hybrid is imported from Japan as a Completely Built Unit. AUTOMOBILE INDUSTRY A well developed transport network indicates a well developed economy. As India's transport network is developing at a fast pace, Indian Automobile Industry is growing too. Also, the Automobile industry provides employment to a large section of the population. Thus the role of Automobile Industry cannot be overlooked in Indian Economy. India Automobile Industry includes the manufacture of trucks, buses, passenger cars, defense vehicles, two-wheelers, etc. The Major Car Manufacturers: • Hindustan Motors • Maruti Udyog • Fiat India Private Ltd • Ford India Ltd • General Motors India Pvt. Ltd • Honda Siel Cars India Ltd • Hyundai Motors India Ltd • Skoda India Private Ltd • Toyota Kirloskar Motor Ltd The automobile sector has also posted significant growth of 20% in 2006-07, to achieve a sales turnover of Rs.1,40,600 crores. Further, there is a potential for higher growth due to outsourcing activities by global automobiles companies. Indian automobile industry is booming with a growth rate of around 15% annually. Also major international auto companies have decided to put up their plant in India like Nissan Motors, Volkswagen etc. PESTEL ANALYSIS OF THE AUTOMOBILE INDUSTRY Politically, the government is planning to make India the automobile hub by 2020. The government is providing various incentives and tax benefits to companies in manufacturing small cars. Government has also lowered the excise duty on small cars. Economically, driving a car has become increasingly expensive due to adverse changes in petrol prices, maintenance and taxes. Although maintenance cost of a car is huge, but the companies are trying to manufacture at a low cost. The companies are trying to use various alternatives like Electricity & CNG to solve these problems. Socio-demographically, automobiles have developed into lifestyle-products. Generally, preferences head towards smaller cars for environmental, economical and convenience reasons. Initially, having a car was a luxury but now it has become a necessity for the people in big cities. Technologically, the pace of change and advancements in technology is continuously leading to new beneficial developments, particularly for small cars. The more and better use of technology is helping the companies to increase productivity. The companies are now spending huge amount of money on the R&D so as to improve productivity. Environmentally, the automobile industry is causing a lot of damage to the environment. The usage of cars is causing a lot of pollution & congestion on roads in the developing countries. The Gulf Region is facing huge crisis, the oil reserves are declining. The temperatures are increasing. Legal, Government has liberalized the norms for foreign investment and import of technology and that appears to have benefited the automobile sector. The production of total vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2004-05. It is likely that the production of such vehicles will exceed 10 million in the next couple of years. MARKETING MIX (4 P’s) of The Eighth Generation Accord PRODUCT The new Accord comes with 5-speed Manual Transmission and 5-speed Automatic transmission, to give the exhilarating experience of F-1 racing. The chassis and the body have been renewed. Together with Variable Gear Ratio (VGR) steering, the new Accord becomes quicker and more agile despite its big size. The new Accord is equipped with the best of safety technologies, with intelligent six airbags, including side curtain air bags and Advanced Compatibility Engineering (ACE) body for safety of the riders during a collision. The interior of the car blends with advanced functionality including eight-way power seat adjustment, tilt and telescopic steering wheel, an advanced audio system with a USB port. The car has rear AC vents and reading lights at the rear. The new Honda Accord has Honda’s advanced 2.4 litre i-VTEC engine that delivers a leading power of 180 ps. The engine also delivers outstanding environmental performance and meets Euro-IV levels and is E-10 (10% ethanol and 90% unleaded petrol) compatible. PRICE The new Honda Accord is available in three types - Accord 2.4, Accord 2.4 Elegance and Accord 2.4 Inspire. The price of the vehicle starts from Rs 18.26 lakh (on road) and goes up to Rs 19.20 lakh. PLACE At present HSCI have 2 manufacturing plants, one at Greater Noida and the second plant in Tapukara (Rajasthan). Honda Siel Cars India has a strong sales and distribution network spread across the country. The network includes 87 outlets in 53 cities. Having established itself as a leading brand in the metros, the company is now focusing on increasing its presence in towns. PROMOTION The company has not advertised much for the product. After seven generations of being the most sought-after luxury sedan, the Eighth Generation Accord needs no promotional effort to sell. Still the company has put hoardings & banners all across the metro cities in India. The advertisement given by the company clearly shows that the all new 2008 Accord Sedan has more style, more luxury and more sophistication than ever. FUTURE PLANS • HSCI is planning to come out with a premium small car (JAZZ) in the country by next June. • The company also proposes to complete phase II of its second plant in Rajasthan. • Several advanced manufacturing techniques and robots have been imported to be used at the manufacturing plants to enhance quality and accuracy of operations. .