Honda Cars India Holds 8th Position, Auto News, ET Auto

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Q. What are your three focus areas for your merchant partners in a post-COVID world?

In order to avoid inventory build-up and blocking of working capital in the network and to supply vehicles in line with the market, we have been relying on efficient inventory management since last year. We are further strengthening this process of demand forecasting with our dealer partners. Since the retail sector has been badly affected since last month, we are discussing a relaxation of the financing standards with our banking partners.

With COVID -19, we have been strengthening our digital initiatives for sales and service since last year, which have supported business continuity and ensured customer comfort. We continue to work closely with our reseller partners to improve our digital initiatives to complement their on-site services. The dealership staff is fully trained to make it easier for our customers to buy a car from home.

Q. How many points of sale do you currently have in total – for 3S, sales only, service only, please indicate the separation. How high were your numbers in FY20?

We currently have 331 offices across India for sales and service. Most of the branches are 3S establishments spread across all major cities in the country. Many of our dealer partners have set up expanded sales outlets at smaller locations in their respective regions in order to achieve a greater reach.

With the expanded digital platforms available not just on websites but even in the dealership, such as digital displays and simulators, the size of the dealership will grow based on the changing dynamics. Depending on market requirements, the format of smaller branches is likely to continue in order to increase the range and offer convenience to customers in distant locations. The service facility with on-site support such as pick-and-drop, service camps, etc. is provided by the larger 3S setups for these locations.

The Car Retail Ranking Report 2021 Series: Honda Cars India holds 8th place
Note: All data are estimates based on information obtained from various sources and extrapolated from ETAuto research.

Point of sale: Point of sale refers to all types of points of sale / dealers / touchpoints from which cars have been sold.

Average Sales Revenue: This is based on the average sales price per unit multiplied by the total number of units sold in a year divided by the number of points of sale.

Average sales price per unit: This is an estimated price derived from the price range and the calculation made by ETAuto. It may differ slightly from the exact price.

As a result of the pandemic, most OEMs are seriously considering streamlining their dealership investments to make them leaner, smaller and more affordable. Demand for it has been increasing since 2019 after the Indian auto industry, and especially the auto market, began to decline, many dealers went bankrupt and some of them had to close their ornate stores. The situation has worsened with the pandemic, forcing automakers to review their retail strategy. ETAuto has analyzed the situation in detail and also turned to the automobile manufacturers to find out their plans and strategies. Based on the results, Kia India tops the table in sales per outlet, while a detailed series on the ranking will be published starting today.

The Japanese automaker appears to have risen from the ashes like a phoenix with the launch of its affordable compact SUV Magnite, which recorded over 50,000 bookings in the first three months after launch. This marks the revival of the long-established brand. Although the automaker ranks last at number 12, it has made strides in building a lean and frugal retail setup. Rakesh Srivastava, Managing Director of NMIPL, shared the retail strategy and said it has opened over 20 asset light showrooms in tier 1 cities. Edited excerpts:

The Japanese automaker appears to have risen from the ashes like a phoenix with the launch of its affordable compact SUV Magnite, which recorded over 50,000 bookings in the first three months after launch. This marks the revival of the long-established brand. Although the automaker ranks last at number 12, it has made strides in building a lean and frugal retail setup. Rakesh Srivastava, Managing Director of NMIPL, shared the retail strategy and said it has opened more than 20 asset light showrooms in tier 1 cities. Edited excerpts:

As a result of the pandemic, most OEMs are seriously considering streamlining their dealership investments to make them leaner, smaller and more affordable. Demand for it has been increasing since 2019 after the Indian auto industry, and especially the auto market, began to decline, many dealers went bankrupt and some of them had to close their ornate stores. The situation has worsened with the pandemic, forcing automakers to review their retail strategy. ETAuto has analyzed the situation in detail and also turned to the automobile manufacturers to find out their plans and strategies. Based on the results, Skoda Auto India ranks 9th in the table for sales per point of sale.

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