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Honda Cars planning to collaborate with its 2-wheeler dealers

Honda Cars planning to collaborate with its 2-wheeler dealers

Snapshot: Honda is planning to collaborate with its 2-wheeler dealer partners with an aim to increase its car sales in India.

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Honda is planning to collaborate with its 2-wheeler dealer partners with an aim to increase its car sales in India. The Japanese automajor wants to take advantage of the market reach and dealer network of its 2-wheeler arm in order to reach more customers in rural areas. Globally in major markets,Honda manages two- and four-wheeler businesses under one company, whereas in India, Honda entered in association with different partners.

Shinji Aoyama, who held the reins at Honda Motorcycle & Scooter India (HMSI) at the time when Honda and Hero ended their joint venture in 2010, is currently the chief officer (Asia & Oceania) at the parent and the man behind the latest move. "I think we can collaborate more as far as dealer network is concerned. HMSI dealers (who) sell with profit can reinvest in Honda's automobile business. This is (already) happening.

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We will accelerate this momentum," Aoyama said. "For automobiles, personally, I have to focus more on the business … our position is still (in) a single-digit. I want to make it double-digit … it is a very difficult task. In five years' time, I want to realise this to 10%."

Honda has 348 dealership network across 233 cities in India and the brand's market share stood at 5.3 percent in the April-June 2017 quarter. The company is aiming to increase its market share to 10 percent over the next five years. On the other hand, Honda Motorcycle & Scooter India has 5,379 dealerships, branches and sub-branches and its market share stand at 30 percent. It is the largest manufacturers of scooters and the second largest manufacturer of motorcycles in the country behind Hero MotoCorp.

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