HERALD: Why this kind of association in Goa where you are partnering with GTDC and Manipal Hospitals?
YADVINDER SINGH GULERIA: Our product is such which draws all and the Indian domestic tourists who come to Goa for fun, use my product and gets attached to it and click pictures. So our product becomes part of their good and shared memories on all social media post. So we can reach out to many prospective customers by doing such activity in just one state in India. It is a win win situation for all.
HERALD: What brings you here in Goa?
YSG: We are the number one in Goa market for many years. We have 45 per cent of the Goa’s market share in two wheelers segment. The most favoured largest selling two wheeler remains Activa and Goa has surely given us all the more reason to be in Goa over and over again. Navi, our new product is ideal for Goa as it can be customized to the need of the customer and will compliment to the mood of fun and relaxation in Goa. Even tourist operators in Goa have taken this new vehicle with much interest.
HERALD: How is Goa market different from other states in India?
YSG: The high share of two wheelers in Goa is unique. In Goa, 70 per cent of the total two wheelers sold are automatic. India average is 32-33 per cent. The market here in Goa is completely different from the other states. In Goa we have also observer that is a high number of women rider and it shows the true women empowerment here in Goa.
HERALD: How well prepared are you for the upcoming GST regime?
YSG: We all are sanguine to the fact that it is one of the biggest tax reforms which will be happening in India since independence. We have consultants who are advising us based on the latest update which comes from the Parliament. So we are well equipped in terms of not only knowing the parameter which is going to affect our business, but also reforming our IT systems. Since we are not doing business in isolation, there are dealer partners have also been informed on a regular basis and many of them have registered with the GST. We have also taken steps to sensitize our dealers.
Secondly, everyone is talking of 28 per cent as a tax rate, but whether this is going to benefit the end customer is still early to say because GST is not the only amount which customer pays to buy a vehicle. There are road tax and registration fee etc. Some of the states have already started increasing the fees.
HERALD: What measures are you taking to become the number one in India and beat Hero, your biggest competitor?
YSG: We are a not only the reliable brand but we have also become a desirable brand in India. We are the number one most trusted Japanese brand in the country.
A survey done last year showed that we jumped to this position by a flat 50 per cent. We keep our volume targets set and Honda is growing at 12 per cent as compared to the industry growth of 8 per cent. This year will be crossing five million units and it will be the first time that any two-wheeler company anywhere on this planet will be selling five million units. Next year we have a target of 6 million which is 20 per cent growth in the target. However, last year the growth in Goa was flat but still Honda in Goa is growing at nine per cent and reason could be local issues like mining, tourism etc.
