2007 REPORTS > INDIA - February 17, 2007
INDIA
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Anatomy of a Honda factory  
Masahiro Takedagawa, CEO and president of Honda Siel Cars India
May 25, 1996, Noida. Honda leased a 60-hectare plot of land just outside New Delhi for 99 years. It is within these premises today that car-owner dreams are realized.

An escorted tour around the Hondal Siel Cars India (HSCI) factory by President and CEO Masahiro Takedagawa reveals the inner workings that make Honda a strong player in India today. The vast space is divided systematically and every inch of the floor is utilized to its full capacity.

``Customers look to Honda for the most advanced technology,'' Takedagawa says as he points out the robot arms welding a car body together with mathematical precision.

HSCI proudly works with 98 suppliers in India and they are all present in the assembly line, visible from the crates of large door parts to the boxes of wires for the car radio. Throughout the company, from the CEO down, everybody wears the same uniform, very much in line with founder Soichiro Honda's belief that work dignifies the employee, each of whom plays an important role in the company.

Once fully assembled and test-driven on the premises, the cars are shipped to the 55 dealerships across the country.

Today, 75 percent of the Indian car market is comprised of compact cars. Although Honda has not dipped into this segment yet, it holds a 25 percent market share in the remaining segments.

The Honda City is the largest-selling sedan in India and is well appreciated by customers for its futuristic design, spacious interior and class-leading fuel-efficiency.

In India, Honda sells the City, Civic, Accord and CR-V, all of which have been top-selling models in their respective categories.

Anticipating a doubling of the local car market in the next 10 years, Takedagawa says that Honda will sharply increase its investment in the country by releasing new models and raising production capacity to 150,000 per year by 2010. But expansion is not the main goal, according to Takedagawa, a 27-year veteran of Honda who mastered his sales and after-sales skills in four other countries. ``We always refer to the customer as a measure of success,'' he stresses.

That customer-centered attitude will surely prove valuable in a market where people wait for years to buy a new car and resale values are watched closely.

www.hondacarindia.com

 
 
Table of Contents
From outsourcing to a source of innovation
Encore!! Encore!!
Tapping into centuries of interaction and knowledge
Software firm expands to Japan and other new markets
Global steel pioneers with Japan in mind
Rewriting the future of Indian ingenuity
Bringing together the best of all worlds
Enriching the world from India
Anatomy of a Honda factory
The partner of choice for developing India
A great plus for India
India's poor get shelter from the rain
Inviting India


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