Team-BHP - Honda plans two small cars in India by 2009

Source, TOI business section:

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Honda plans two small cars
Anshul Dhamija | TNN

Tapukara (Rajasthan): Japanese auto major Honda is gearing up to take on the Indian small car market with two cars. Although Honda Siel Cars India (HSCI) had initially planned to roll out the Jazz, the company now plans to launch a brand new small car based on a new platform and a small car based on the Jazz platform.
While Honda's new small car would take on the Maruti 800, the second Jazz-based car will take on competition in the B and B+ segment like Hyundai Santro and Chevrolet Aveo UVA.
These cars are expected to roll out from the company's 350-acre new manufacturing facility in Tapukara, Rajasthan — 70 km from Delhi — by 2009. The facility will also house a 100-acre R&D unit and a 150-acre components manufacturing hub.
Small cars constitute over 50% of the passenger car market in India. In 2006-07, compact cars constituted 7.5 lakh units of the overall sales of 12 lakh.
Speaking to TOI on the sidelines of the company's Bhoomi Poojan of its Tapukara manufacturing facility, Masahiro Takedagawa, CEO of HSCI said, "It's too early for me to comment which car will roll out first. It may be both."
Honda has invested nearly Rs 1,000 crore in its new facility and plans to take that investment to Rs 2,200 crore. The facility will have an initial production capacity of 60,000 units with an installed capacity of 2 lakh units.
A dozen of HSCI's vendors and ancillary suppliers who manufacture auto components will be based in and around the manufacturing facility. These units are to mop in Rs 2,800 crore worth investment in the next five years.
HSCI is hopeful of bringing its hybrid cars — the hybrid Civic and the Accord — to India next year. These cars run on batteries as well as standby petrol engine and are 25% more fuel efficient than non-hybrid cars. The cars would be initially brought in as completely built units (CBUs).
HSCI is also expanding capacity at its existing plant in Greater Noida to 1,00,000 units by year-end as it aims to sell 1,50,000 vehicles a year in India by 2010.
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so which ones are these going to be ?? any guesses on pricing or performance characteristics, and it will be there in automatic version for sure! worth a wait and watch.

another link :

TAPUKARA (ALWAR): Honda Siel Cars India (HSCI) is betting big on the compact car segment as part of its India strategy. Besides launching a premium small car by 2009, the company is also studying the Rs 1-lakh car segment. Honda Motor Company chairman Satoshi Aoki said,

“We are studying the Fit and City models for the cheap small car segment. But we have to make sure that a cheap small car will have Honda characteristics. However, our mini-vehicles are priced at $9,000, and making a car with one third of that price would be a challenge.” As of now the Japanese auto maker has firmed up its plans to take on Maruti Swift and Hyundai Getz with a compact car that it will produce in its second car plant at Tapukara, Rajasthan.

Explaining the definition of Honda’s small car, HSCI’s president & CEO Masahiro Takedagawa said, “We want to position our small car in the segment which enjoys excise benefits on the 1.2 litre petrol engine and 1.5 litre diesel engine with the size of 4000 mm.” The car would be a global product and would be largely produced to cater to the domestic demand. “We are targeting at localising the small car by almost 90%. After studying the demand, we will look at exporting it to other markets since it’s going to be a global product,” he added.

The auto maker, which currently has diesel offerings in Europe, might also look at getting it to India. “We are entering the US markets with our diesel engines in the next three years. Our future markets are in Japan and Asia. With the Indian government’s commitment to cleaner fuels, we are studying the prospect of bringing in a diesel engine in the country,” added Mr Aoki.

HSCI will pump in Rs 1,000 crore for building an initial capacity of 60,000 units. After production begins in the fourth quarter, the company has plans to ramp it up to 2 lakh unit at a later stage. According to Rajasthan State Industrial Development & Industrial Corporation (RIICO) officials, the company has committed investment worth Rs 2,200 crore for the car plant. Additionally, about eight auto component companies, which are setting up their plants around Honda’s facility, are expected to bring in another Rs 2,800 crore.

Source : Economic times

Every one seems to be eyeing the 1lac rupee segment!

ok... if you read the two articles and read them between the lines it says something important. at least i felt so.

the one from the TOI business section says that they are targetting the B/B+ segment with a premium small car, probably based on the Jazz or the Fit platform. this is more or less the same as the one in ET.

however interesting part is in what the second car is about. TOI article says that they are aiming for M800... but the ET article says they are studying the 1lac car segment with interest for their second car.

Implications as per Honda,
* M800 will be still around in 2009 ;)
* M800 will basically be the Maruti's answer to 1lac segment.
Now many of us suspected this all the while but Honda seems to have kind of agreed to this assessment in a roundabout way.

Two things that caught my attention: [quote=BunnyPunia;486854]

“We want to position our small car in the segment which enjoys excise benefits on the 1.2 litre petrol engine and 1.5 litre diesel engine with the size of 4000 mm.” “We are targeting at localising the small car by almost 90%.

With the Indian government’s commitment to cleaner fuels, we are studying the prospect of bringing in a diesel engine in the country,” added Mr Aoki.

Source : Economic times quote]

This is fantastic news. Honda is at long last thinking small cars and diesel. Yippee..!! If Honda were to make a small car, rest assured..it would be quality...even with high level of local trim. Even better, Honda are committed to produce the cleanest and most refined diesel(s). Bring it on!

Was only a matter of time before Honda & Toyota joined in with their small car offerings to the volumes segment. The two have a history of carefully studying markets with a lukewarm range of products...and then going the entire mile once they are established. Knowing the Indian affinity toward these brands, they are going to shake up the segment.

Buttttttttttttttttttttttt

Quote:

While Honda's new small car would take on the Maruti 800, the second Jazz-based car will take on competition in the B and B+ segment like Hyundai Santro and Chevrolet Aveo UVA.

Sounds too optimistic? Honda has never been able to price its products too competitively even in the 8 - 18 lac segments. I dont think it is realistic in expecting them to compete with the 800! More like a Swift / Getz segment contender.

Quote:

Originally Posted by GTO (Post 487865)

agree:

And i dont think its wise to do that either!

Indians buy honda at higher price compared to competition to get the barnd name. Imagine, a Honda 1L (or m800 competitor or whatever) car owner driving upto a CRV or accord owner and saying i got a Honda too.

So much for 'paying for the brand'!

I wanted to post it too, Geek beat it.

Just wild guess on what cars would be there by 2009 EOY:

- Getz Prime Plus, Santro must have been replaced with Santro Prime
- current Swift petrol may have gone, only diesel might stay & may be Swift petrol with upgraded engine
- WagonR replaced by WagonZ :)
- Indica v4
- M800 obselete, Alto Plus
- SX4 Petrol and Diesel
- New NHC with ABS, Airbag, etc
- Accent & Indigo obselete, Verna Prime to beat SX4 & new NHC

interesting list.

Quote:

Originally Posted by sathya_nars (Post 487928)

Just wild guess on what cars would be there by 2009 EOY:
- Getz Prime Plus, Santro must have been replaced with Santro Prime
- current Swift petrol may have gone, only diesel might stay & may be Swift petrol with upgraded engine
- WagonR replaced by WagonZ :)
- Indica v4
- M800 obselete, Alto Plus
- SX4 Petrol and Diesel
- New NHC with ABS, Airbag, etc
- Accent & Indigo obselete, Verna Prime to beat SX4 & new NHC

Interesting indeed! Only the SX4 wont be changing? ;)

Quote:

Honda is hoping to gain a greater share of the Indian small car market, but it is unlikely to sell automobiles at the cut-rate prices that rivals Tata Motors and Renault are promising for upcoming models.

Our mini car in Japan costs around $9,000 ... to produce something at one-third the cost will be rather challenging

AS expected honda is not going after the one lakh car.However don't see anything stopping the jazz/fit from being launched here.

Quote:

“The North American business is very important to us, but we like to add business from other markets like China, India, Southeast Asia and Brazil, so we won't be dependent on a single market,” Aoki said.

Hope the guys at toyota india are reading this.

Source:
Honda Won't Go Low In India - Forbes.com