We need to spend more on research here: Yoichiro Ueno

Interview with President & CEO, Honda Cars India

The local subsidiary of Honda’s automobile business features is fourth in India, after Maruti Suzuki, Hyundai and Mahindra, 21 years since its journey began in this country. Yoichiro Ueno, president and chief executive of Honda Cars India, talks of his plans and assessment with journalists. Arnab Dutta reports:

How do you see the Indian market?

Very dynamic, as customer preferences change very quickly, depending on the economic situation and price of the vehicle, among others. So, for manufacturers, it is important to have flexibility to meet the supply and operational requirements by market need. The most recent example being the shift between diesel and petrol variants. Our manufacturing facilities are capable of producing both types. The latest model, the Honda BR-V, offers customers this choice.

Where does India stand for Honda Cars globally? After more than 20 years here, Honda lags Maruti Suzuki or Hyundai in sales. Are you planning to increase focus?

India has become an important market for Honda and it currently stands at fourth position in the pecking order, contributing four per cent of Honda’s (the parent) revenue from the car business. It is also the fastest growing market for us. We are a global company, unlike Maruti Suzuki which sells 90 per cent of the vehicles they produce in the domestic market. To increase focus on a market, we need to reallocate our resources for research and development, among other things. Given the potential India has, I hope the central management will give us more resources.

Sale of Honda’s SUV and hatchbacks such as the Brio and Mobilio remain at less than 500 units a month. Will that not affect the BR-V’s sale?

(Hyundai's) Creta serves the same segment as BR-V is intended to. The Brio had to take a hit soon after its launch here, as floods in Thailand halted its production. The BR-V has some common parts as the Mobilio but its sale is not really dependent on Mobilio. We will continue selling the Mobilio, as BR-V is targeted at a different segment. India is the third country after Indonesia and Thailand where we've launched the BR-V. If it attracts enough attention from overseas buyers, we might consider exporting the BR-V from India.

Are you planning to expand your portfolio?

We will be launching a hybrid petrol version of the Accord this year.  

Did you fail to sense the market in India?

Yes, in some instances. For example, diesel engine cars. Globally, Honda does not focus on diesel engines but after staying in India for a few years, we realised its importance and decided to develop small diesel engines. At this point, we are receiving instructions from headquarters to meet customer demand in India and balance the diesel-petrol vehicle demand.

But, we have grown steadily and outpaced the market. In the past four years, our sales went up by more than 200 per cent, to 200,000 units a year from 60,000. However, I believe, there is a lot to be done to enhance the experience on Honda cars in India.