Honda to launch a small car and compact SUV by 2017 in India
Japanese car manufacturer Honda Motor has started its much awaited work on developing a small car along with a compact sports utility vehicle in order to target the Indian market. The company aims to break into the mass market segment of India which the Indians are already familiar with. Portion of such development is expected to be carried out in India by focusing on maximizing the use of many local products. This has been done to keep the costs as low as possible. As per reports President and CEO of Honda Motor India, Yoshiyuki Matsumoto has just given a green signal for the development of its much awaited small car without hinting the exact time of its introduction.
In order to signify its potential, the renowned firm from Japan sees the small car’s market in other South Asian nations along with Africa and Indonesia by code naming it the ‘World A Entry Car’. On the Indian roads, these small cars, both hatchbacks and sub-4 metre sedans are on a ruling spree. Together, they account for over two-thirds of the total passenger vehicle sales. These cars are successfully driving the performance of big companies like Maruti Suzuki and also the local unit of Hyundai Motor.In order to elaborate on this, compact SUV EcoSport has tremendously helped Ford shrug off years of underperformance in the Indian market. Honda’s Amaze which is a growing small sedan has splendidly driven its India sales in the last year. Honda failed to deliver the kind of success that it has expected by launching the Brio hatchback in India sometimes back in order to drive sales. The much-awaited small car and compact SUV is going to be built on a re-engineered GSP platform, similar to that of Brio.
The Amaze along with the new Mobilio utility vehicle is based on the GSP platform. This small car is expected to be positioned below the Brio and could very well be Honda’s first car which costs even less than Rs 4 lakh. The Brio is priced at Rs 4.24 lakh in the Mumbai showrooms and has become the lowest priced car in its portfolio. The whole sub-Rs 4 lakh Indian car market accounts for nearly 35-40% of the entire passenger car market.
The new sub-4 meter SUV will be pitted against Ford`s EcoSport and M&M’s yet-to-be-launched micro SUV as its suitable competitors. Honda is planning to launch its new vehicles latest by 2017. This move by Honda will definitely give a major boost to the Japanese company especially in volumes. Honda’s wishlist is a third plant in Gujarat. The first two plants are already in Rajasthan and Greater Noida. Honda is considerably squeezing the platform for gaining from economies of scale with overall five cars on the GSP base. With more and more manufacturers launching small cars and compact SUV`s we bet this segment will get highly competitive in the near future.
Pictures Source : Zigwheels