[aaggoswami]

Could not figure out any thread for this news, and hence started this thread. The news is that Honda plans to launch a small car to challenge Toyota and Suzuki. Means that they are planning a car smaller than Jazz.

Source : Honda plans to roll out small car by 2012 to take on Toyota, Suzuki

Article :

Honda Motor's small car is likely to hit the Indian market earlier than expected. The new car (code named 2CV), being developed Making of Nano

especially for India, may be launched before 2011-12 to take on Toyota and break Suzuki's stronghold on the Indian market.

Toyota plans to launch its small car next year, while Suzuki, with its seven compact models, dominates the Indian small car segment with over 60 per cent market share.

Honda doesn't have a small car in its portfolio and has been looking at new models to gain market share in India.

The 2CV may come with a 1.1 litre petrol engine and could double Honda's volumes in India, currently hovering around 52,000 cars per year.

The car is expected to roll out from its stalled manufacturing plant in Rajasthan, where Honda plans to have targeted capacity of one lakh small cars per annum.

The company refused to confirm the developments on the new car and said that nothing has changed from its earlier stated position.

'All plans of the new small car are going as per schedule,' the Honda spokeswomen said.

An executive in the automotive component industry said that Honda's small car project is on track and it may also have a diesel variant at a later stage to gain on the rising popularity of diesel cars in India.

The car will be pitted against the growing tribe of premium hatchback cars like the Swift, Hyundai i10, General Motors
Aveo UV-A, Tata Motors' Indica, Fiat's Punto, Ford Figo and Toyota's yet to be launched small car.

This is the fastest growing segment in the domestic market with over 2.5 lakh cars sold every year.

The new car will be much smaller than Honda Jazz, its other hatchback, but is expected to have an affordable price tag of Rs 4-4.5 lakh for the petrol variant.

It may share platform (common manufacturing line and spares) with the Jazz including the same iV-TEC engine technology, but will fit as a small entry-level A segment car.

The same car will also be made in Thailand where it is expected to be developed and sold under the Thai government's Eco-Car project, which enjoys many tax concessions. However any such eco-variant is ruled out for the Indian market for the time being.

[rr_zen]

Read about this in one of the newspapers yesterday. Good move by Honda, but I would take the prices quoted with a pinch of salt (or should I say heaps) till the official prices are announced. Lets hope that Honda gets the pricing right for once.

[Safin]

Great news for Indian customers Now with Hyundai planning to launch a small car by 2011 and now Honda too joining the list,it would be interesting to see what strategy will Maruti come up with. I just hope that Honda gets the price right atleast this time or else we might see another epic fail like Jazz

[SkyWalker]

well, lets hope they learnt their lesson from the Jazz debacle and price it better now!

[tacho]

I spent a full minute trying to understand what on earth the words 'Making of Nano' (in the first line) had anything to do with the article.

On a serious note, if true, this can only be good news for the consumer. I wonder who the sources for this article are. The only quoted text from a Honda official says that plans are on schedule. I also notice the frequent use of the words 'may' and 'expected'. For all we know, the Economic Times could have just made this up (I don't know what their track record is when it comes to automotive news). I hope they turn out to be wrong about the engine and Honda ends up launching a 1.8 litre rocket for 4 lakhs

[PaglaGoru]

Lets all wait for the costliest small car in the market again. How about a car with dimensions of a chevy spark priced at 6.5 lacs (without the salt)? Instant hit right ?

Honestly, did they just wake up to the fact that India is a booming market for small cars ?

[.anshuman]

This segment of cars is expected to get very competitive with every most major manufacturers working overtime to launch their small cars, as a result the consumer will come out to be the winner with lots of choice and offers.

[Technocrat]

LOL first they said 2 small cars in 2009 & ended up launching the expensive Jazz.

Here's the Old News.

[beejay]

There have been talks of a Honda small car for a long time now. Unfortunately nothing has materialized. Will this also be the same?

And if its a Honda, we need to see if it would be priced right, which is most unlikely.
However it should create a stir as many would buy it for the badge.

What small car does Toyota have in India for Honda to take on?

[longhorn]

yeah right. I for one ain't buying this story. They launch a hatch with a 1.2 litre engine for 7 lakhs and now they are planning to launch another hatch with a 1.1 litre engine for 4 lakhs. gimme a break.

[mrwalker]

"Honda plans to roll out small car by 2012 to take on Toyota, Suzuki."

- By 2012 the small car market in India will be very congested with several subsegments addressed by multiple established providers, including, presumably, Toyota. IMHO it will be too late for anyone, esp Honda, to slot in another offering and hope to gain any substantial volumes
- Need to add Hyundai, GM to this list of companies they intend to 'take on'

[ksethuram]

Well, every body knows Honda got their back kicked with jazz.
Even though City is the extended version of the international Jazz, we buy it bcz we think any car is big car when it comes with a boot. Honda thought they can do another Skoda Octavia thing by pricing their cars high enough and it backfired.
Toyota has their subsidiary Daihatsu selling small cars, which i think will come under Toyota brand. Honda will have to design a car from the ground up to compete with others. This should take at least 4 years before production starts. We will need to wait long before we see something really small in 4L range from Honda.

[Torque123]

According to me 2012 is too late for Honda to enter the small car category. Even if they lauch a car in the small car segment they cannot expect a premium to be paid as there are hell a number of options (read good ones) available. This is not c or d segment where in they have/had a monopoly.Knowing the pricing stratergy of Honda I see this car also going the jazz way. I would never invest my money on Honda when it comes to Hatchbacks.

[Sudan_NFS]

Oh man I can't stop laughing,They have already got a nose break and head banged with Jazz by pricing it High and now for 4- 4.5 lakh they will sell an Alto size car.
The dealer will say Sirrr it's HONDA sir Hoonda and justify the price.

In the News they have said that Honda doesn't have a small car.So what about JAZZ ,is it not a small car.

By 2012, Nissan would have 1-2 cars in that level at good price and Honda has forgot that.

p.s: no offense to Honda owner's and lover's.

[twinblades]

It maybe a smart idea to launch it around 2012. This way they can see how the other manufactures will fare against Maruti-Suzuki and make the appropriate changes to meet the market requirements. Personally I like the jazz but the price just does not make sense to me when there are so many other options.