Honda Siel Cars India 21% sales decline in August 2012

The period April to August 2012 has resulted in a 54% increase in sales for Honda Siel Cars India (HSCI). This is noteworthy at a time when auto industry is reeling under deplorable economic conditions in the country, rising fuel prices and escalating interest rates. Despite these factors HSCI sales during this period stood at 29,932 units while the figure during the same period in the previous year was at just 19,433 units. Following these sales the company now looks ahead at upcoming festive season to add to their sales targets for rest of this year.

Taking only month of August 2012 into account, HSCI sold 5,470 units as against 6,907 units in August 2011, which equates to 21% sales decline for the month. Model wise sales break-up is Brio 2335 units, Jazz 465 units, City 2536 units, Civic 53 units, Accord 34 units and CR-V 47 units. The feel good Brio is the chosen hatchback for the ongoing third edition of "Drive to Discover", a relay drive from 22 August 2012 to 12 September 2012.

HSCI are leading manufacturers of passenger cars in India. The company was established in 1995 and manufactures their vehicles from two plants one in Greater Noida, UP and the other in Tapukara, Rajasthan. While Brio, Jazz, City, Civic and Accord are produced at the former, Honda CR-V is imported from Japan as a CBU and is sold through their 137 strong dealer network spread aross 85 cities in India.

Honda Siel Cars India dissolves partnership with Usha International Limited: Complete divestment by UIL from HSCI

Honda Siel Cars India have revealed that the joint venture between Honda Motor Company Ltd., Japan and Usha International Limited has been dissolved. Following this, HSCI will be 100% Honda subsidiary in India while changing of name and other formalities will take place over a period of the coming two months.

 

UIL held 3.16% shares in Honda Siel Cars India (HSCI) and had been recently expressing their desire to disinvest in a bid to branch off on their own and concentrate on their own core businesses. It was hence by mutual consent that the two parties parted way bringing to a close a 17 year old partnership. The joint venture came into existence in 1995. The company has production facilities at Greater Noida and Bhiwadi in Rajasthan. HSCI lineup includes Honda City, Accord, Jazz, Brio and the imported CR-V.

Sale was on mutual consent and consisted of 18 million shares at a cost of 100 per piece including a non compete fee. As per terms of the agreement, Siddharth Shriram ceased to be Director and Chairman of HSCI. This deal will enable the company to invest and develop its own cars in the Indian market. The Honda freedom offer is currently valid on the occasion of Independence Day accomodates Civic, Accord and CR-V slaes offers currently. Select models available for sales through Canteen Stores Department (CSD) and Central Police Canteen (CPC). Last year, Honda ended a similar joint venture with Hero Group by selling its 26% stake in the two wheeler company to its Indian partners so as to bring out their own brand of motorcycles.