[Technocrat]

This was in Today's TOI Pune.
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Honda set to invest Rs 950 cr.

Gameplan: Capacity Expansion, New Cars
By Byas Anand/TNN

New Delhi: Honda Motor of Japan has pledged to invest Rs 950 crore in India to ride the growing demand for passenger cars. The investment — to be infused over a period of five years — would be made for adding capacity at its existing Greater Noida unit, introducing new premium models, and completely overhauling its existing City and Accord cars.

The Japanese car maker is preparing to roll out its next offensive — code-named UH — in the highly competitive domestic car market in the 2006-07 fiscal, Honda said in a recent note to the government. Though the company has not disclosed details about the new model, sources said its premium mid-sizer, Civic, is expected to be the model slated for India.

Honda said its existing City — which was introduced in October 2003 — is heading a makeover in the current fiscal. Besides, the car will undergo a full model change in the 2008-09 fiscal. Its luxury model Accord is also slated for minor modifications in 2005-06, followed by a complete overhaul in 2008-09. In addition, the company will roll out a new CR-V in the 2007-08 financial year.

“While new models will be introduced as per market requirements, Honda’s strategy will be to provide full changes of its models, with a life cycle of 3-5 years,” the company said. “Concurrently, minor model changes shall be introduced at a frequency of every 2-3 years, depending on the needs of the customers and advancement of technology.”

The firm is also planning to take benefit of the Indo-Thai Free Trade Agreement and use India as a base to source low-cost auto components for its manufacturing facility in Thailand. “With the envisaged local production of CR-V and UH models, the prospects for exports of components and sub-assemblies for these models may also increase,” it said. CR-V is today imported as a fully-built unit and marketed in India.

[Sahil]

Honda is just going to get stronger and stronger as times goes in India. But i dont think its really wise for them to get the civic out now with their current line up coz it will be priced too close to the accord.
This is what i feel honda should do before launching the Civic.... get a totally new version coz the current one looks too much like the OHC... Secondly they have to ensure the civic doesnt eat into the accord market or vice-versa. The Civic i guuess will come at around 11 lakhs...with power similar to the accord 4 cyl current accord.... honda should stop the 4 cyl accord...keep only the v6 engine but come up with a cheaper alternative by adding a manual for the power hunger, this will ensure that the market for civic and accord dont overlap.
As for the NHC i guess the only changes that will come about is the Vtec. But this company is going to stay at the top for decades in India for sure.

[typeOnegative]

Originally Posted by Sahil

Honda is just going to get stronger and stronger as times goes in India.

Stronger in which segment? They seem to be concentrating more on the higher end with their target being those who want an 'image'. Do you think this is wise in a scenario where with the economy doing well, people will soon look to cars having more aspirational value? Honda and Toyota I think run the risk of becoming boring in the times to come. If, for example, VW brings in the Passat, dont you think some people will shift that way?

[RX135]

Originally Posted by typeOnegative

If, for example, VW brings in the Passat, dont you think some people will shift that way?

Don't know about others, but I would definitely fall for it. To me, it has THE best looking side profile for a sedan. Picture perfect I can still very well remember those Passat ads on Channel 4 around 8-9 years back.

[Abhay]

The article gives out only One really new model - the Civic
No where do I see plans to introduce more new models but upgrades of cars which are already successful..as any big cars can be.
If Honda reallly wants to become a volume player (same goes for Toyota) shouldnt they be more actively looking at a hatchback for India?

[typeOnegative]

Originally Posted by Abhay

If Honda reallly wants to become a volume player (same goes for Toyota) shouldnt they be more actively looking at a hatchback for India?

One of the options that they should be looking at most certainly. And yeah they have some pruning to do on the price front. They have the capability to beat both Maruti and Hyundai if they set their minds to it. But I guess they are a bit too condescending when it comes to India.

RX ... Yep, I would fall for the Passat too.

[Abhay]

yep typeO, I too would fall for the Passat, Bora/Jetta and mostly for the Golf

[CaliAtenza]

Skoda Octavia=VW Jetta/Bora for the most part, Skoda Superb=VW Passat

[typeOnegative]

Originally Posted by CaliAtenza

Skoda Octavia=VW Jetta/Bora for the most part, Skoda Superb=VW Passat

Is the price the same too? I thought the Passat took on the Accord and Camry in its lower trims. Over here it is not the same.

[GTO]

Toyota is certainly working on introducing a Daihaitsu hatchback in India.

GTO

[Abhay]

Yep GTO or even their own Passo hatch, which if priced correctly can take on the cars like Getz/Swift and even beat them. Maybe the small Daihatsu can go ever a small segmet lower to battle with the WagonR/Indicas.

Nissan should also look at the Micra for India...but I dont know why the opted for teh XTrail as their opening car...guess its easier to import vehicles than actually make them here..

sorry all above is off topic (slightly), CaliA - yeah they share the same platforms but they arent exactly same lookers...

[johnjacob]

Originally Posted by Abhay

yep typeO, I too would fall for the Passat, Bora/Jetta and mostly for the Golf

The new Golf V GTI - in scarlet RED!! drool!!

[nishant_kingpin]

One of the major segments that these companies can really kick start and become leaders in is station wagon segment where most of the current models have not done too well.

A car from these big names in the Marina category or Sail category may be a risk which could be really rewarding if this works well.

[Beemer]

Originally Posted by typeOnegative

If, for example, VW brings in the Passat, dont you think some people will shift that way?

Wow if VW brings in the new passat , if priced sensibly IMO it will eat a big share of accord/camry or for that matter any car in that segment . The new passat is impeccable .

[Montoya]

Hope they upgrade tyres and NHC engine to belt out atleast 100 bhp if not more..

p.s Is theis thread about Hondas gameplan or VWS??