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Source Economic Times:-
Honda Motor Co has recalled the CEO and another top executive of its Indian subsidiary, a highly unusual and unprecedented move by the Japanese automobile giant at a time the local unit is struggling to keep pace with sprightlier rivals and a fast-changing market.
Takashi Nagai and Seki Inaba, the president & CEO and marketing head, respectively, of Honda SIEL Cars India (HSCI), have spent less than two years in their present roles in India and their exit is being viewed as a desperate gambit by Honda to cut losses and make a fresh start in one of the world's top emerging car markets.
A Honda SIEL spokeswoman confirmed Nagai's exit, calling it "part of routine top management changes which are announced at this time of every year".
Inaba, reached by ET for his comments, did not give reasons for his imminent departure, only saying: "It seems I may not be here for long and will be going back". But other company officials, who asked not to be identified, said the fact Nagai and Inaba were leaving so soon into their assignments - and both at the same time - made their exits anything but routine.
Nagai's predecessor Masahiro Takedagawa spent five years as the top boss in India, while Inaba's predecessor held the job for four years. Inaba took charge only last April. Nagai, who will move on as the president and representative director of Honda Logistics Inc, will be replaced by H Kanayama, the head of Honda's operations in Taiwan, on April 1.
For years, Honda ruled the premium car segment, with India's middle and upper classes lapping up its products for their quality and sporty performance.
Its City sedan was the top-seller in the category for more than a decade, while its Civic and Accord models also dominated their respective segments a few years ago.
But the company has struggled to capture the imagination of car buyers in recent months.
Despite being present in India for 14 years, its status is now that of a fringe player, holding a less than 2% share of the market. Its global rivals, meanwhile, have gained traction.
Germany's Volkswagen, which started operations in India just four years ago, has grabbed more than 3% of the Indian car market, while Honda's Japanese rival Toyota has a 6% market share.
Automobile industry experts say Honda's top bosses in India failed to act fast on the market's rapid shift towards diesel vehicles, which proved calamitous for sales.
Sales fell 32% in the first 10 months of the fiscal year even though the passenger vehicle market grew 1.45%.
While more than 40% of the cars sold in India are now diesel, Honda is the only carmaker with an all-petrol line-up.
Cheers
Jazzy
Honda Motor Co has recalled the CEO and another top executive of its Indian subsidiary, a highly unusual and unprecedented move by the Japanese automobile giant at a time the local unit is struggling to keep pace with sprightlier rivals and a fast-changing market.
Takashi Nagai and Seki Inaba, the president & CEO and marketing head, respectively, of Honda SIEL Cars India (HSCI), have spent less than two years in their present roles in India and their exit is being viewed as a desperate gambit by Honda to cut losses and make a fresh start in one of the world's top emerging car markets.
A Honda SIEL spokeswoman confirmed Nagai's exit, calling it "part of routine top management changes which are announced at this time of every year".
Inaba, reached by ET for his comments, did not give reasons for his imminent departure, only saying: "It seems I may not be here for long and will be going back". But other company officials, who asked not to be identified, said the fact Nagai and Inaba were leaving so soon into their assignments - and both at the same time - made their exits anything but routine.
Nagai's predecessor Masahiro Takedagawa spent five years as the top boss in India, while Inaba's predecessor held the job for four years. Inaba took charge only last April. Nagai, who will move on as the president and representative director of Honda Logistics Inc, will be replaced by H Kanayama, the head of Honda's operations in Taiwan, on April 1.
For years, Honda ruled the premium car segment, with India's middle and upper classes lapping up its products for their quality and sporty performance.
Its City sedan was the top-seller in the category for more than a decade, while its Civic and Accord models also dominated their respective segments a few years ago.
But the company has struggled to capture the imagination of car buyers in recent months.
Despite being present in India for 14 years, its status is now that of a fringe player, holding a less than 2% share of the market. Its global rivals, meanwhile, have gained traction.
Germany's Volkswagen, which started operations in India just four years ago, has grabbed more than 3% of the Indian car market, while Honda's Japanese rival Toyota has a 6% market share.
Automobile industry experts say Honda's top bosses in India failed to act fast on the market's rapid shift towards diesel vehicles, which proved calamitous for sales.
Sales fell 32% in the first 10 months of the fiscal year even though the passenger vehicle market grew 1.45%.
While more than 40% of the cars sold in India are now diesel, Honda is the only carmaker with an all-petrol line-up.
Cheers
Jazzy