Honda to open more dealerships: 1 New Dealer a month till March 2012

Dealing with flagging sales figures and increasing competition from its rivals, Honda SIEL cars India have decided to increase the number of dealerships across the country. The company has plans to increase the number of dealerships by 28%.

Currently the company has 117 dealerships across 71 cities, which will be increased to 150 and increase company’s reach to a total of 90 cities across the country. By having more dealers, the carmaker is “getting closer to the customer”, said Jnaneswar Sen, vice president, marketing, Honda SIEL India Ltd.

The company has plans to open one dealership every month till March 2012. Opening up of dealerships are a part of the marketing strategy and will boost the advertising to reverse flagging sales as it introduces its lowest-priced car next year. This new small car is targeted at the volume market which accounts for 79 percent of the sales in India. The car maker has plans to offer the car for less than 500,000 rupees ($10,675) in the second half of 2011.

Source: Bloomberg

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