Honda India is believed to spend around four per cent of its turnover in A&P. Hondas advertising has been subdued after a three-month burst of campaigns to launch Accord in mid-2001.
However, the new thrust on brand campaignsthe New Honda City has been positioned as Unbelievable Honda by creative agency Dhar & Hoonmoves in tandem with acceleration in plant production and dealership expansion programmes.
Honda India will invest Rs 200 crore in the next three years towards model upgradations and capacity enhancement. In the last two years, Honda Indias capex investment has been put at around Rs 200 crore, which includes model development for i-DSI engine-fitted City.
Honda India is also in the process of inducting around 300-350 employees to its current strength of 850 employees as it prepares to commence second shift operations at its Gautam Budh Nagar plant, near New Delhi beginning mid-November 2003.
Honda India is aiming at a turnover of Rs 1,500 crore in 2003-04, up from Rs 1,000 crore in 2002-03. The company is hoping to wipe out its accumulated losses of Rs 70 crore (at the end of 02-03 fiscal) in the current fiscal.
Honda India general manager Neeraj Garg said, We hope to sell 21,00 cars in 2003-04, 25,000 cars in 03-04 and 30,000 in 05-06. Weve already sold 7,300 cars (including 6,300 City) in the first six months of the current fiscal year. In 2002-03, Honda India sold 13,300 cars.
Mr Garg added: We will add around six-seven dealerships in fiscal 2003-04. As for this fiscal, weve already added eight dealerships and will add another eight by March 04 to take our dealership network to 49.