Japanese car maker Honda is exploring the possibility to foray into the
multi-purpose vehicle (MPV) segment in India, a top company official
said today.
"Honda is mulling a seven-seater multi-purpose vehicle. And we are, at
this moment, studying the market whether we have to launch it or
not...," Jnaneswar Sen, senior vice-president of sales and marketing of
Honda Cars India, told reporters here.
He further said: "See, to have a product, we must meet all the
conditions -- what are people looking for, style, space. So we have to
match everything. We actually decide whether we can actually bring it or
not. That's the study we are doing now."
"We are looking at two options -- one it is a seven seater
multi-purpose vehicle and the other is of course, compact sports utility
vehicle. That concept has already been developed and it has been
displayed at Detroit Motor Show in January this year," he added.
Asked whether people were shifting towards petrol car as diesel prices
have been constantly increasing in the past, he said: "We hear from the
industry that there is a slight shift (on preference to petrol cars from
diesel)."
To a query on whether it was possible to launch diesel variants of the
company's existing models including -- Brio, City using the same 1.5
litre diesel engine, Mr Sen said: "This engine will not be fitted in any
of our current models. It will be only for our new models. When City
was designed, it was designed to carry a petrol engine. The cost of
modification for diesel engine is fairly high...So, we decided not to."
Mr Sen, who launched the company's mid-size sedan Amaze, said: "With
the launch of Amaze we are entering into a new segment, which we were
not present all these years."
It is priced between Rs. 5.04 lakh (ex-showroom Chennai) for entry-level petrol and Rs. 7.68 lakh (ex-showroom Chennai) for top-end diesel variant.
"The other big significance of the launch of Amaze is, it comes with
Diesel engine. Whenever (in future) we launch new models, they may carry
this (diesel) engine as well," he said.
Noting that the company since its nationwide launch of Amaze has got
good response, he said, the company may retail about 4,000 to 5,000 due
to capacity constraints at its manufacturing facility.
To a query, he said the company would also expand its presence to 102
cities by this financial year compared to the existing 97 cities.
"At this moment we are present in 97 cities. So tier I and II are of
course completely covered. Our focus is to go further down across 100
cities soon within this year," he said, adding the company would focus
on sales of Amaze in the domestic market.
"Unlike many other companies, our opportunity to exports is not huge. I
think Honda has about 150 factories across the world. For time being no
specific plans (on exports), we are going to focus on domestic market,"
he said.
Source;
http://profit.ndtv.com/news/industries/article-honda-exploring-options-to-foray-into-multi-purpose-vehicle-segment-in-india-320952
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