According to the Company, Honda Cars has removed Katsushi Inoue, the India CEO just after his one year completion from his appointment as the company was not happy with his performance. This was indeed a big step for the industry as the business insiders perceive a result with the poor performance with some of the new company’s models like Brio and Mobilio.
This not the first time that the Japanese company has initiated at prematurely cutting off its chief executive since experiencing a similar move in the year 2012, where the company had called India CEO back and president Takashi Nagai after the completion of 2 years of his tenure. Also the company has removed Seki Inaba, the marketing director, who was shifted within the one year of his appointment.
Honda has always been in pressure with its new models and been looking for the new innovative ways to enhance its performance. The Mobilio MPV that launched in the July 2014 has drastically failed to boost up and however managed to sell around 7,228 units, that to in the first 10 months, fiscal (April, 2015-Jan, 2016). The other new model Brio also dripped in the 10 months from 13,530 units of this fiscal.
However, a company head is usually given with a term of 3 years in order to understand the dynamics and business culture of a country and also lay out a growth strategy for business expansion. Also the company officials have insisted not too much to be put into the transfer as Inoue had put great efforts to enhance customer experience and creativities in the digitalization field, during his tenure period.
Inoue, who shifts as COO to the European region is known to be replaced by Yoichiro Ueno, who will be joining India Honda Cars from Malaysia, where he worked as MD and CEO since 2011 and the claimed changes are believed to be happen in the coming April.