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Old 19th December 2006, 16:09   #1
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Default Honda to launch small car in India

Honda to launch small car in India : Honda, car, B-segment, India, Life, Jazz : : CNN-IBN


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New Delhi: So do you like a bit of slow and soothing Jazz? Or would you prefer living Life kingsize?

Well it could be a toss up between either even as Honda announces plans to launch a mid-segment car in India.

Honda Motor President and CEO, Takeo Fukui said on Tuesday that the company is scouting for a location for a new greenfield plant in India to expand capacity and part of their plans include launching a B-segment car.

Honda is said to be mulling investments of an estimated $200 million for the new plant.

Currently the company is doubling capacity at its Greater Noida plant to 1,00,000 units at an investment of Rs 400 crore.

Honda has a partnership with the Shrirams in India, though it holds as much as around 99 per cent in the joint venture Honda Siel Cars India.

After the success of Accord, Civic and City, Honda plans to make the small-car the pillar of its global model strategies. In his year-end address in Tokyo, Fukui said the company was aiming to produce and sell more than 1,50,000 cars in India annually by the end of 2010.

  • Launched in 2001, Jazz is sold in 60 countries worldwide. It can seat five people, has a 1.3-litre twin-spark four-cylinder engine, has both manual and automatic transmission. The car has five doors.

  • Life is a four-door hatchback with a 660-cc engine. Its engine capacity could, however, be a restricting factor for Honda to look at it seriously.

Last edited by himanshugoswami : 19th December 2006 at 16:10.
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Old 19th December 2006, 16:18   #2
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By looking at the recent launch of the New CRV and it's price tag, hope this one is not way over priced.

But a small car launch from Honda is most welcome. I think the Jazz will make it here rather than Life. Even Life can be a considered thinking Mitsu is also launching something similar with an identical engine.

Heard Toyota was also planning something similar too. So, is it the next boom that's going to happen in Indian Automobile industry? The small car boom!! Will be interesting.
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Old 19th December 2006, 16:40   #3
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Honda is one company that prices their cars at a premium, and poeple still run after the HONDA nameplate...

As one magazine once rightly put it... The main problem that Honda is facing is something every company would want... Demand is more than supply...

But... From the article, they are only talking of setting up a new facility for the car... Which means it wont be here anytime till mid 08...

They are only on the lookout for a location, and after that setting up a plant... Getting it operational... and rolling out the car... Will take time...
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Old 19th December 2006, 17:59   #4
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No wonder Honda plans to do this.. golden rule in India, you can only be market leader if you can capture A and B segment, something Maruti and Hyundai have understood well. Well, I guess better late than never, however IMHO it will be long wait for Honda before they can become market leader in the small cars segment.
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Old 19th December 2006, 22:25   #5
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Jazz is easiest to do because its based on City. Life would be too small in size and engine and also expensive.

They might even develop a new cheap car on the lines of Logan.
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Old 19th December 2006, 22:49   #6
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The problem with Honda is that they only try to capture luxury segment in India.
Unlike abroad, Honda will continue to be a niche segment in India - probably Honda doesn't care about it because of their excellent sales worldwide. I believe this is true for Toyota as well.
On the otherhand, Suzuki and Hyundai are not such heavyweights in international market. So, they have to depend quite as much on India.
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Old 20th December 2006, 12:41   #7
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guess it will be at least 2008 end by the time the honda small car is launched as they are still looking for a location to build their new plant!!
i feel it will be the jazz thats going to come.waiting eagerly for the toyota small car too-then that segment is going to be the one to watch out for!
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Old 20th December 2006, 12:52   #8
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ans:: Use a trebuchet
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Old 20th December 2006, 14:03   #9
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Great! It will jazz up the B Segment!

But if Honda overprices their cars like what they managed to do with City, it will spell disaster for them coz the competition is too hot to handle in the B segment!
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Old 20th December 2006, 14:20   #10
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Prime consideration for Honda would be to price the products right & getting the equipment list right. Remember the small car segment is much more competitive than any other segment in the market so Honda can't afford to be lax & think that they can have a sure-shot success on their hands. If they launch something like the SR-V even they would have a failure on their hands.

The Jazz is a known product being the hatchback version of the City & is very highly praised in the developed markets especially for it's space & comfort. If they price it right then the Swift/Getz etc. could have a real tough fight ahead.

Life I'm not so sure about especially if it's comes with a 660cc engine. I guess it would depend majorly on the pricing, since Honda is certainly going to highlight the small engine as a benefit saying it'll give you better FE.

Originally Posted by Revvhead View Post
ans:: Use a trebuchet
???? Revvhead could you please elaborate what your point is?
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Old 20th December 2006, 14:32   #11
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Read abt the same thing in Business Line - Bangalore edition, today. The article said that acc to a cost analysis study by Honda, even if Jazz is heavily localized, it would cost a City. Honda therefore plans to develop an all-new car just for India in the premium compact category - Swift, Getz, Fusion range. They might use an exisitng chassis and bits and pieces from their parts bin for this new car, to keep costs down.

Last edited by theMAG : 20th December 2006 at 14:33.
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Old 4th February 2007, 14:13   #12
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Honda Siel begins work on small car

Honda Siel Cars India on Monday said it has already begun work for its proposed small car, slated for launch by 2009-10. "Our engineers from Japan have already started work in India.They are studying the conditions here to collect various data so as to incorporate it while developing a new platform for the small car," the Honda Siel Cars India President and CEO, Mr Masahiro Takedagawa, said.

The new platform would be a global one, developed keeping in mind the Indian conditions, he said. "We may introduce the product globally next year...although its introduction in India would be later," Mr Takedagawa said.

The Hindu Businessline
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Old 18th February 2007, 21:35   #13
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Honda too plans compact car for India in 2009

Honda Siel Cars India plans to launch its compact car in the first quarter of 2009 and hopes to sell 40,000 units a year, according to component makers, who have been asked to submit bids for supplying parts.
he car is likely to compete against the Maruti Swift, Chevrolet U-VA and Hyundai Getz in the premium hatchback segment.While Honda has 1.3 litre and 1.5 litre engines that could be put in the small car, it is also reportedly working on a 1.2 litre engine to avail the tax breaks given in last year’s budget, component makers say.

Source:Honda too plans compact car for India in 2009 :
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Old 18th February 2007, 23:39   #14
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Have a hunch that they will use an old platform with new panelling, say the Today (or even Life). The 656 cc unit is very reliable and very very fuel efficient and offers a decent performance (almost perfect for India). Even if they over price this Keijidosha car they will be in the WagonR band.

On the otherhand, Jazz does not feel likely because even if they would gain on common components but had that been so, would they not make the city cheaper anyway!
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Old 19th February 2007, 09:20   #15
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Source: Hondaís compact car coming to India in 2009

Japanese automakerís Indian unit Honda Siel Cars India has plans to launch their first compact car in the Indian market by 2009. This car is likely to be positioned against the existing Maruti Suzuki Swift, Chevrolet U-VA and Hyundai Getz in the premium hatchback segment.
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