Thats because they have some rules about quality and safety enforced by the GOVT. You make faulty brakes, you'll have to recall your cars. You think that would happen in pakistan?
Agreed we should also have mandatory features like all seats seatbelts, airbags, etc. and cars should pass some crash tests. Is that going to happen anytime soon? pretty unlikely, to be quite frank.
I do think that it will help Honda get a better share of the market because IMO there is a demand for it. Lexus and Audi are different...they aren't competing your average GLI or City or Altis or Civic, nor is there a huge market for it. If they ever wanted to enter the upper end of the economic cars, I am afraid they will have to do the same.
If thats what its trying, then its absolutely failing. Secondly, Honda is no non-profit, charity organization trying to help people. Even if its "TRYING to provide latest gadgets and technologies", its only to boost its own sales not so we can get "out of stone age like" vehicles. Clearly, the sales figure do not reflect this so something is wrong.
May be they just dont really care about the Pakistani market as long as they have some presence and some profit. Becoming the dominant player might just not be their mission and maybe they are just happy with a small (still significant) share they have.
My opinion however is different and quite clear...they do have a fair chance to dominate this market or atleast get an equal share if they plan things right. For this, they will have to take a long look at what needs to be done, and I have clearly stated the two fundamental changes in philosophy they will have to undertake in my previous post. Ofcourse there are other contributing factors too, like expensive spare parts, etc.
I am afraid, I cannot agree with you here. It ain't doing fine. Rather, its performing below potential because of the consumers mindset.
I am no technical person, so it might have all those good ratios you mentioned but they have failed to successfully convey this to the consumer and win him on their side.
In corporate marketing, " I made an excellent product that the consumer doesn't want" is not an acceptable answer.
Why on earth would they want to do that? Shoot the goose that lays the golden egg for them?
Honestly, that would be the most foolish thing they could think of right now. What you're referring to as big, underpowered car is being seen by the consumer as comfortable yet economical car.
XLI is an example of enjoying a near monopoly. Only charity or non-profit organizations would not capitalize on it. City has built itself a reputation of being a smaller car can Corolla. With such a reputation, you cant hope to compete with same/similar price range. Bring a 1.3L Civic with comparably priced spare parts, more durability, more comfort and good marketing and see what happens.
