Apr 08 2024, 09:13

Downhill ride: Six reasons why Honda's Creta-rival failed to Elevate the carmaker's India fortune:

President & CEO, Honda Cars India Ltd, hakoya Tumura addressing media persoms during the launch of the new Horida bilevate, SUV car on June 6, 202 in New Delhi, India.

The Japanese carmaker, which had a lean and ageing portfolio of just two sedans until late last year, had been betting on its latest model to turn around its fortune in India. However, after an initial spike immediately following its August 2023 launch, sales of Honda Elevate have been on a steady slide.

"When the race gets a new destination and the world looks up to you, you know you aren't just a contender, #YouAre The Chasel".

Eight months since Honda Cars India announced the launch of Elevate, the company's first mid-size SUV in the country seems to have veered off its promised path to end up as 'just another contender' in a tightly contested market.

The Japanese carmaker, which had a lean and ageing portfolio of just two sedans until late last year, had been betting on its latest model to turn around its fortune in India. However, after an initial spike immediately following its August 2023 launch, the Elevate has been on a steady downhill ride on the sales charts.

The model, which clocked close to 6,000 units in monthly sales in September last year, has witnessed a 42% slump in volumes over the last seven-month period.

With its old warhorses City and Amaze failing to lure customers into the showrooms and the Elevate losing momentum, Honda Cars India seems to be bracing for a bumpy ride in the country.

According to vehicle registration portal Vahan, Honda's India retail sales fell 3% in March 2024 to just 6,241 un from a year ago period and is a far cry from the 14,014 units the company sold in March 2019. With a 325-strong dealer networks and 430 showrooms (as per online portal Cardekho.com) spread across 242 cities, this translates into just 20 cars per dealership and 15 cars per showroom as against market leader Maruti's 39 cars per showroom.

"In an extremely crowded SUV segment with multiple powertrains offerings, it was our strategic decision to offer the Elevate in Petrol... where it has already carved a strong segment share. We also focused on offering CVT automatic and ADAS (advanced driver assistance system) safety at much more affordable price points in the segment, and this approach is being accepted well. The sales are in line with our business plan," a Honda spokesperson said in response to queries from ET Prime.

However, with the Elevate recording only 33,642 units in sales in the first eight months since its launch, it is far behind competition. Kia sold 81,000 Seltos during the same period while Maruti's Grand Vitara clocked nearly 60,000 units.


source: et 

Apr 08 2024, 09:13

Downhill ride: Six reasons why Honda's Creta-rival failed to Elevate the carmaker's India fortune:

President & CEO, Honda Cars India Ltd, hakoya Tumura addressing media persoms during the launch of the new Horida bilevate, SUV car on June 6, 202 in New Delhi, India.

The Japanese carmaker, which had a lean and ageing portfolio of just two sedans until late last year, had been betting on its latest model to turn around its fortune in India. However, after an initial spike immediately following its August 2023 launch, sales of Honda Elevate have been on a steady slide.

"When the race gets a new destination and the world looks up to you, you know you aren't just a contender, #YouAre The Chasel".

Eight months since Honda Cars India announced the launch of Elevate, the company's first mid-size SUV in the country seems to have veered off its promised path to end up as 'just another contender' in a tightly contested market.

The Japanese carmaker, which had a lean and ageing portfolio of just two sedans until late last year, had been betting on its latest model to turn around its fortune in India. However, after an initial spike immediately following its August 2023 launch, the Elevate has been on a steady downhill ride on the sales charts.

The model, which clocked close to 6,000 units in monthly sales in September last year, has witnessed a 42% slump in volumes over the last seven-month period.

With its old warhorses City and Amaze failing to lure customers into the showrooms and the Elevate losing momentum, Honda Cars India seems to be bracing for a bumpy ride in the country.

According to vehicle registration portal Vahan, Honda's India retail sales fell 3% in March 2024 to just 6,241 un from a year ago period and is a far cry from the 14,014 units the company sold in March 2019. With a 325-strong dealer networks and 430 showrooms (as per online portal Cardekho.com) spread across 242 cities, this translates into just 20 cars per dealership and 15 cars per showroom as against market leader Maruti's 39 cars per showroom.

"In an extremely crowded SUV segment with multiple powertrains offerings, it was our strategic decision to offer the Elevate in Petrol... where it has already carved a strong segment share. We also focused on offering CVT automatic and ADAS (advanced driver assistance system) safety at much more affordable price points in the segment, and this approach is being accepted well. The sales are in line with our business plan," a Honda spokesperson said in response to queries from ET Prime.

However, with the Elevate recording only 33,642 units in sales in the first eight months since its launch, it is far behind competition. Kia sold 81,000 Seltos during the same period while Maruti's Grand Vitara clocked nearly 60,000 units.


source: et