Honda City simply rocks!!

Yesterday the Auto Media went Gaga ... On the launch of the New City in Thailand ...

while the entire world is going Woo Hoo!! over it ... I frankly struggle to locate, find "what New in the New City" 

Probably I'm not a Petro head who knows the car part by part , part no wise... well so are the normal 90% customers if not more... who had been waiting for the new city for a long long time..

Auto journos says ... Most changes are on the exterior ... and thats where I struggle the most to spot them ... They says its the new grille ... bla bla bla ... But no idea...

They say there would be leather seats, stereo with car Play, ABS ... Well Good Morning even the Ignis and Baleno come with these features now...

They say powertrain is very smooth and refined.... Hello! Honda has mastered making the finest petrol powertrains for donkey years now...

Did I head DRL's ? Daytime running Lamps ? YOu call that new in today's age... If they come ... they shall be restroing basic hygiene... 

So my questions remains ...  #WhatsNew?

Honda, A Brand which has been aspirational for the Indian consumers...Back in 1998 when the Honda Siel Cars debuted with the first Honda City at India's First Honda Dealership at Chandigarh, People went from Delhi to buy the City. That was the aspiration for owning a car with the power of 100 Horses... Something new and alien for the Indian Consumers back then... Many returning to Delhi with dented bumpers and fender... Unable to handle the power of the High rev Honda engines back then!

Honda, somehow lost the plot since 2010, it seems ... The Products like CR-V, Mobilio, BR-V have just seen average or below Average Performance.  Amaze though has a great start but was unable to displace DZire from it's throne. 

Now comes the WR-V . Pricing seems to be right. Shape is surely futuristic. Performance of Honda Petrol Powertrains is surely incomparable ... Petrol is the In thing these days 

The WR-V Ratings on Motor Uncle seems just Average ... They are the Experts  rating  only as of now... as the Actual Customers are yet to build to a significant no 

WR-V Sales performance would surely be a cornerstone for Honda Cars and We wish them all the very best!

Whats up Maruti Suzuki ? Broken the decade long jinx, if not longer??

Lets discuss the list of Products bombed in Premium segment last decade : Baleno , Kizashi, Grand Vitara ... Yup! A long list it is! 

Now comes in NExa, New Marketing, New Branding, Fading Consumer Memory ( always helps) , forgiving customer for past debacles

and you have a brilliant new Product and Buying Experience! 

Despite Honda launching a refreshed City, the Ciaz has overtaken the former in monthly sales. Tables have surely turned

Honda as a brand has stood for prestige, premiumness, luxury and comfort and has enjoyed a superlative Aspirational value since its launch in India in 1997-98. though it was very distinct from its global image which has been of entry level workhorse. Several Mass Auto Brands come to India and become Luxurious and Premium , other examples being VW,  Skoda, 

So what worked for Ciaz ? Shift to Nexa , Consistent Product Performance, Change in Mindset and Brand Perception of Maruti Brand or a combination of all these factors ... All said and done ...a big Hats off to Maruti Suzuki India for Pulling this off ... Lets see how long the lead can be sustained... as its just the beginning!

• New Brand brings with itself,  freshness, new energy, Innovation. 

• The Culture is open, operates like a start up , encourages innovation. 

• The Company goes overboard in wooing the employees and the dealers as they are extended family.  The Dealer personnel represent the brand and a new brand understands this completely.  

• The Top Team at MG Motor is mostly from GM India. Even the Plant at Halol is the Old GM Plant. They have unfulfilled aspirations from the GM days which shall be harnessed for the success for MG Motor. It surely comes round as a watershed moment. 

• The company leaves no stone unturned in launching a classy product with Top Notch performance and deliverables at every front. In the Automotive, it surely begins with the product as the consumer experiences it on a daily basis.

•  The Product is surely a show stopper. Its feature loaded with several Segment First initiatives.  

  

   

  

Now Come the Challenges : 

"At the Same time, GM entered India before Honda, Toyota and Hyundai but could not sustain. It boils down to the Right Strategy & Vision."

Brand Acceptance can be a Big Challenge 

Possible Initial Competition Narrative against MG 

"So this is one rendition. You can control , train your own dealer teams but not the competition ones!

A Great far Reaching Digital Campaign can help arrest such narratives from becoming popular opinions."

Motor Uncle's Opinion 

 

A relationship based on 'half truth' can't endure. So MG Motor should surely talk about the Iconic British Brand but at the same time, should not shy away from saying its owned by SAIC. In fact take it as an opportunity to share the humongous achievements, the colossal stance, the great achievements of the parent company.

 

"Establish MG Motor as well as SAIC as brands in the minds and hearts of the consumer before the competition bashing narrative grips the consumer's mind."

 

Remember how Baleno used to desold by Honda sales guys, 15 yrs back ? When a customer would take Baleno's name as an alternative, Honda Sales guys would ask , "Sir, are you thinking of Buying the Maruti Baleno instead of the Honda City?" Back then , just "Prefixing Maruti" would kill the premiumness of the Product.

 

The constant premium product market failures of Maruti eventually led to formation of Nexa, which surely turned the fortunes for the Baleno Brand!

 

The other day , we overheard one proud father mention on the phone, "My Son has bought a Creta"

He didnt say his son bought a Hyundai Car. Now the products aspiration and Brand even exceeds the car brand! A great situation to be in! 

 

At the same time it cant be a One Product wonder. No Company has tasted sustained success like this. 

 

Moreover in the Age of Shared Mobility, A Personal car Plus Personal Driver Business Case is in any case unviable! People are in no tearing hurry to buy a new set of wheels or even replace their existing car.

 

"Kaam chal jaata hai Uber and Ola se.  So Focussed Pan India Fleet  Penetration and Tie Ups would not be a Bad idea!" 

 

 

 

 https://worldautoforum.com/india-shared-mobility-summit/

 

For any new entrant there are these 5 balls which need to juggled and balanced. 

 

1. Employee & Vendor Relations 

Thats literally where it begins. They are your first family. They spread an important message about you in the trade, in the market, in the Industry. They are also the info source for Industry, Media and Investors when all is not well. Managing them well surely pays the dividends. 

 

2. Customer Experience with the Product 

Products are becoming more and more world class, better and better and thus losing key differentiators. Customers want nothing but the best. It takes years to build the Brand and minutes to destroy it. Here we have the "Brand WIP!" MG would need to listen to the customers very carefully. Its human, its ok, to mess up. How fast we respond to fix it, is the KEY! That can be the opportunity to win!

3. Dealer Viability & Dealer Manpower R&R

Even now Nothing beats Toyota's Dealer Network Strategy. They made the initial dealers come up with a great infrastructure with just one Product Qualis.But then the dealers did it for "Toyota". Here MG would need to put constant energy to cajole, impress, retain. Would that be "The GM Way" or a brand new "Mg Way" is what we need to see.

 

4. After sales experience & Cost of Ownership

For a new company, launching an SUV in the range of 15L,  volumes shall be low. But one can take it as an opportunity. You have to impress less no of customers. You can really focus and do it well! The Price Range is such you are neither luxury nor entry level. So customer would surely show they are price conscious. You have to manage your economics well and not go the Kingfisher Way!   

 

5.  Resale value

This is eventually your report card based on your performance on the aforesaid 4 points. It eventually ensures your sustained success!

 

 

 We wish MG Motor all the Very Best to Surge Ahead and  Create History!!

 

Cheers!

 

Motor Uncle Team 

 

motoruncle555@gmail.com