Honda, leading premium car manufacturer in India, is soon going to start work on another small car for Indian roads, reports says. The car will be priced around Rs 5 lakh and will make Honda a major player in small car segment.
EVEN AS Honda Siel Cars India prepares itself for launch of premium small car Jazz, the parent company Honda has started to work on another small car for India.
Just like the Tata’s, the Japanese car manufacturer is starting its work wit the price. It has been learnt that a new research and development team will arrive in India and start work on the new small cars, said to be priced below Rs 5 Lakh. In comparison, the upcoming car Jazz has a price tag of Rs 7 Lakh. Honda hopes to unveil the new car in three years time.
The new car will make Honda a prominent player in the small car segment, which generates big volumes of sales. Currently, the premium car segment includes Hyundai Getz, Skoda Fabia and Chevrolet U-VA and Maruti Suzuki Swift in bother variants.
India will be the lead market for the new small car. Honda expects the large volumes of the new small car to compensate the slow selling Jazz in terms of revenue. Since, the new car will have high localisation content resulting in less expenditure. Also the production facility will be kept busy between the two small cars.
The research and development team comprising of 25 members will be headed by a senior official from Japan. The priority of the team will be to develop a car within Rs 4.5 Lakh margin. The new plant in Rajasthan will be the production centre for Jazz and the new car. Currently, it has a capacity to produce 60,000 units but this number could go up to 2.5 Lakh units annually, indicating the big plans by Honda.
Honda is launching Jazz in June this year. It will be the first small car from Honda Motors for the Indian car market. Apart from this product the company sells – CR-V, Accord, Accord 3.5L, Civic and City.
source: merinews
