Honda cuts sales targets for the year

This year has not really been good for Honda.Newer rivals and overall a negative market sentiment have meant that its bread and butter model the Honda city is not selling as much as Honda expected it to.

Honda had an ambitious target of achieving 90,000 units for this calender year but this target just looks more or less an unlikely proposition.Honda has had a see-saw year with sales rising and falling every other month.Whether the new Honda city[next generation] brings about a change in this trend is what we have to wait and see.

Honda are looking at winning over the enviornmentalists with the launch of the civic hybrid later this year.However even with the excise cut for hybrids the civic hybrid would command a significant premium over its petrol counterpart.On the plus point you feel have done your bit for the enviornment and also get 60% better fuel efficiency than the petrol variant[though I suggest if its the latter proposition which attracts you more,you are better off looking at cheaper diesels from rivals]

For 2009 however Honda are banking on the Jazz[honda's small car].This car is expected by 2009 end by which time the Rajasthan plant should be up and running.But what Honda should learn from Skoda[Fabia] is that a high priced hatchback may not necessarily bring in volumes even if it has a brand name attached to it.

What Honda really needs is a diesel engine in the mass market segment and a sensible pricing strategy.