Honda SIEL Cars India- 17 years old joint venture between Honda Motor Company Japan and Usha International Ltd (UIL) has come to an end recently. After the split of the joint venture, Honda bought full stake of its Indian partner and became full owner of the Honda Cars India. For past sometime, there has been some differences in the opinion of the two regarding their expansion plans for Honda Cars and thus they mutually decided to split and part ways. After the same, Honda has renamed its corporate identity from earlier Honda SIEL to Honda Cars India Limited or HCIL.
As per the official press note dated 10th September 2012, the name change will be with immediate effect as per the fresh Certificate of Incorporation issued by the Registrar of Companies, NCT of Delhi and Haryana.
Commenting on the development, Mr. Hironori Kanayama, President & CEO, Honda Cars India Limited, quoted:
“We are committed to the Indian market and will continue to delight our customers with latest products from Honda, which will enrich their lives and enhance their lifestyles. Honda’s quality, superior technology and overall ownership experience is what has endeared this brand to our customers since inception and same philosophy will drive us in future.”
Talking in terms of the difference it makes to the Honda car buyers in India, we think that it is for the better for customers as Honda Cars India plans to expand their operations in India which will help create more options for Indian car buyers and will increase employment opportunities, local operations and eventually decrease the cost of Honda cars in India as the localization levels improve gradually.
For past one year, since the price cut of Honda Jazz in August 2011 and Introduction of Brio in India towards end of 2012, the sales volumes of Honda Cars India are improving significantly. Although the past fiscal was not good for Honda Cars India because of the production constrains arising because of Japan and Thailand calamities, yet Honda cars India managed to recover from it, launched new products like the 2012 Honda City. Recently, Honda added a mid level City S automatic variant to its City lineup in India. As new brand name, Honda Cars India Limited is expected to soon launch two interesting products in India before November 2012. These two products are Honda City CNG which is already launched in Thailand and Honda Brio automatic with CVT which are both very good value products in their respective segments.
We will keep you posted on the latest developments of Honda Cars in India, stay tuned to Car Blog India.
