After over a decade-long presence in India with bigger cars like Honda City, Civic, Accord and Honda CR-V, Honda Siel Cars India (HSCI) on Wednesday forayed into the mass volume compact car segment with Honda Jazz. The car, which is available in three variants, is priced between Rs 6.98 lakh and Rs 7.33 lakh (ex showroom Delhi) and is so far the most expensive super-mini car available in the country.

?Around 75-80% of the total passenger car industry in India is compact cars, and with Jazz we have entered into this segment,? says Masahiro Takedagawa, president and CEO, HSCI, adding that the segment should contribute to expanding the company’s business in India and eventually take up its market share to double digit as against 4-5% now.

According to Takedagawa, the company is looking at selling close to 2,000 to 2,500 units of Jazz a month, which would be half the number of Honda City. HSCI, on an average, sells 3,500 to 4,000 units of Honda City a month.

Based on the platform of Honda City and powered by 1.2 litre i-VTEC engine, the car is being rolled out from Honda?s plant in Greater Noida.

According to Siam, the mini and compact car segments together registered a growth of 11.1% in May at 88,861 units as compared to 79,983 units during the same month last year.

While around 2 lakh premium hatchbacks are sold in India annually, superhatch cars Skoda Fabia, Ford Fusion and GM’s SRV together sold just around 10,000 units in the last financial year. The new launches, which will include Honda Jazz, Fiat’s Grand Punto, Volkswagen Polo and Renault Sandero, are expected to increase the market size to 30,000-40,000 units this year.

While HSCI is working on another small car for the domestic market, which will priced lower than Jazz, the company has indefinitely put on hold its plans for starting car production at its second plant coming up in Rajasthan.

?We would first completely utilise the 1,00,000 unit capacity at our Greater Noida plant and eventually go for a second shift production there before we decide to start production in Rajasthan,? said Takedagawa, adding that the second small car would roll out from Rajasthan in two-three years.

Top gear

•The launch is expected to eventually take the company?s market share to double digit as against 4-5% at present

•Honda is looking at selling close to 2,000-2,500 units of Jazz a month