Honda Plans to Set Up 200 Sales Stations Every Year

Greetings! Here is an interesting piece of news from Honda that will certainly enhance their brand value and goodwill. HMSI, the number four two wheeler manufacturer in Indian two wheeler industry, has decided to attain the no.1 position and leave its competitors behind as they plan to roll out 200 sales stations every year. In the view to become no.1, Honda will have to spread its business network and thus they are planning to add 100 dealers this year and 200 new dealers every year. Adding these many dealership bases every year will certainly add to Honda’s goodwill and will help enhance their customer base.

Overall the company has got extraordinary potential to become the no.1 bike maker in India but for that it needs to plan its steps very carefully. The very famous joint venture between Hero and Honda has ended and the company is mulling over to launch 100cc bikes in India. In the scooter segment too, Honda is doing great. Its scooter Honda Activa is currently leading the scooter sales and is one of the top selling models in India. Honda’s other scooters that are also doing well. All in all, Honda is placed in a comfort zone as far as the scooter segment and increasing their dealership bases will help the company grab some more market share over their competitors.

According to the society of Indian Automobile Manufacturers, Honda is currently the king of scooter segment with a whooping 43.5 percent of market share as against mere 7 percent growth in the bike segment from April 2010 to February this year. These facts make it clear that the company needs to develop an effective bike selling strategy that makes them grab the same amount of market share as they enjoy in scooter segment.

Honda certainly has long way to go as far as the dealership bases are concerned. The company has mere 800 dealership bases which are much less than other manufacturers. Manufacturers like Hero group and Bajaj enjoy 4500 and 3600 dealerships respectively. Honda is thus eyeing to increase their dealership network by almost 200 every year for nearly 10 years. As a matter of fact, the company is eyeing to set up 100 new dealerships this year. These steps, if taken with no half measures, will certainly improve Honda’s productivity and help the company conquer its dream to become no.1.