Honda Motor Company has decided to change the management of its Indian subsidiary Honda SIEL Cars India (HSCI). HSCI’s CEO and President Mr. Takashi Nagai and Marketing Head Mr. Seki Inaba who have spent a period of less than 2 years at their current posts in India. According to the company’s spokesperson, the act is part of routine top management changes that take place every year.
HSCI has been facing numerous troubles since 2011 majorly contributed to by the shortage of component supply due to floods in Thailand. Moreover, the domestic market has witnessed a significant slowdown in the year 2011 as a result of the hike in fuel prices and interest rates. The cumulative effect of all these factors has adversely hit the company’s production and sales.
Furthermore, given the difference between petrol fuel price and the diesel price of almost Rs 30 has pushed the customers to drift towards diesel powered cars. Among the many car manufacturers operating in India, Honda is only one which does not have a diesel car model in its portfolio.