Honda India (ONLY) Honda's small car to be launched after mid 2011

Finally, Honda has got an answer for the mass market. Yes, Honda, the Japanese Auto Giant, is preparing to launch a small car with a 1.2 L petrol engine during the later half of 2011 in India.

According to Jnaneswar Sen, vice-president (marketing) of Honda Siel Cars India Ltd, Honda is developing the small car in Japan and the car will be produced in our country at the Noida facility.

Honda small car's starting price will be less than Rs. 5 lakh. In order to provide this price, Honda will be looking out for maximum localisation of this car's components. Honda's Jazz has got 77 percent local parts, new City has got 76 percent local parts, Honda Civic has got 74 percent local parts and the company's luxury sedan, Honda Accord has got 74 percent local parts.

Honda will not launch LPG, CNG or diesel variants for the small car because, Honda doesn't have the technology with them globally. Honda's new plant in Rajasthan, will help the company to produce more cars. The Noida factory of the company is now producing 60,000 cars and has the capacity to produce 1 lakh cars.

Honda is likely to strengthen its dealer network in India before the launch of small car, so as to easily access wider audience. The company hopes that the small car will fuel Honda's sales volume and 2010 will be the time for ground work and consoidation.

Honda has learned hard lessons with its Jazz, that bombed in the market, due to its high price. Now, if Honda could achieve maximum localisation of its small car parts and price the car competitively, Honda can easily grab a considerable share in the small car segment of the country.

Source;
http://living.oneindia.in/automobiles/auto-news/2010/honda-new-car-launch-160710.html