Honda Cars India is studying the market for multipurpose vehicle on the Brio platform and a compact SUV on the Jazz platform. The auto major is planning to launch the two models along with its new City and Jazz next year. Jnaneswar Sen, senior VP ? marketing and sales, Honda Cars India, said, ?We are studying the market for a seven-seater multipurpose vehicle on the Brio platform and a compact SUV on the Jazz platform that have been showcased at auto shows already.?
?We will come up with new models in segments that we do not exist at the moment and diesel variants too. This would be in few years,? said Hironori Kanayama, president and CEO, Honda Cars India.
The MPV on Brio platform is expected to compete against Maruti Suzuki’s Ertiga, while the compact SUV is expected to take on Renault Duster and M&M’s XUV5OO. The models are expected to carry its 1.5-litre diesel engine. Honda sells five models in the country, Brio, City, CR-V, Amaze and Accord, in India. The company has officially shut production of its two models – Jazz and Civic — in February as part of its plan to free production capacity for its new sedan Amaze, built on Brio platform, said the firm.
In the last fiscal, Honda sold 6,619 units of Jazz and 685 units of Civic. ?There were no sales of the two models in March,? said a spokesperson of Honda.
?Both models had their limitations and the company had to take the decision of shutting production. Jazz in terms of design was more fit for developed nations and its pricing was not taken well by the market. And when the company took the price correction, they ended up making losses on it. Civic failed because there was no diesel engine on it,? said Deepesh Rathore, MD, IHS Automotive in India.
?Honda is well poised in the market with Amaze. There is a strategic change in way the Honda will be perceived now. It was earlier seen as the premium car maker known for its design and technology and not price. This is going to change as pricing would become key.?
However, Kanayama has a different take on it. ?Our decision (to shut production of Jazz and Civic) was driven by market change. As we all know, the Civic segment has seen tremendous de-growth in India and Jazz has been discontinued for production adjustments. Therefore, we took the call.?
Civic falls in the executive segment of up to 5 seats in the Society of Indian Automobile Manufacturers (SIAM) report. The segment has seen 35% drop in sales to 23,696 units in 2012-13. Some of the hot-selling models in this segment include Volkswagen’s Jetta and Hyundai’s Elantra. The company has not shares details of its plan of any model in the Civic segment.
Overall, Honda Cars sold 73,483 units in the last financial year, a growth of 35.03%, according to the SIAM report. Honda has an installed capacity of 1.2 lakh units per annum at its Greater Noida plant. The company plans to double its capacity next year with 1.2 lakh units per annum at Tapukara in Alwar, Rajasthan.
?Honda Cars is expected to come back on growth path with the well-priced Amaze. The company is looking at widening its reach in the Indian market with newer models at various price bracket,? said VG Ramakrishnan, MD, Frost & Sullivan.