Honda is certainly looking to establish their supremacy in the Indian automobile market. The Japanese automobile maker has already started taking baby steps in the direction to the no.1 position in the two wheeler gambit. One thing is for sure that Honda is not stopping its journey until their goal to race to no.1 is achieved. Besides planning to enter the mass market of 100cc commuters, the company also enters used two wheeler business.
Speaking on this move from Honda, Mr.Naresh Rattan (Head of Operations, sales and marketing) said that the company has rolled out 5 ‘Best Deal’ outlets in Bangalore, Delhi, Thane, Ahmedabad and Punjab. He further said that the company is currently studying how to reach customers who cannot buy Honda products. He said that the company will refurbishing products and also will be offering six months warranty, spare replacement, branding etc. Honda has similar business set for them in Thailand. There in Thailand the company has a separate factory that rolls out refurbished second hand bikes for sale. Rattan said that if the studies are successful in India, Honda will consider starting a factory that specializes in refurbishing old bikes for sales.
Honda is also concentrating on penetrating rural markets. Rattan further said that the company is hardly present in the rural gambit and this used two wheeler business will help them achieve it. This new business will help Honda build and retain relationships in both the urban and rural gambit. The used two wheeler business will help the company to not only build a brand but also get closer to the consumers.
The two wheeler industry is poised to grow to 20 million by 2020 and Honda is planning to grow their share to 30-35 percent by then. Overall it can be noticed that Honda is taking every step to be no.1 in coming future. Let’s hope that this used two wheeler business works fine for Honda.
