Automobile

A tight leash on cost, ops, portfolio: Honda carves out profit amid niche sales, puny market share

By Eduardo Saverin

Honda operates on a tight marketing spend, relying on word-of-mouth and a lot of social media coverage to communicate to prospective buyers. Image credit, courtesy Honda Cars.

Synopsis

After being in the red for two consecutive years, Honda Cars India returned to profitability in FY22 and reported a 521% jump in profits in FY23. Apart from a set of loyal customers, consolidating India operations, cost control, and phasing out models not generating volumes have been among the steps that helped the carmaker stage a turnaround.

Delhi-based chartered accountant Arjun Khanna and his love for Levi’s jeans go a long way back. For the last 30 years, Khanna has been buying only Levi’s despite its premium pricing and multiple other brands flooding the market. So much so that the 50-year-old confesses that he still wears a worn-out pair of Levi’s jeans he first bought in college. Now, move over from jeans to a completely different spectrum, cars. Honda Cars enjoys a similar

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8 mins read, Last Updated:

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Eduardo Saverin