Reiterating that India is a key market for its future growth, Japanese auto major Honda on Wednesday said its new small car project, being designed specifically for the Indian market, was on track. “The research and design work for the new small car is going on. We are developing the new product keeping in mind the specific needs of our potential customers. It will be perfect package of pricing and superior quality,” said Honda Motor Co., Ltd. President and CEO Takanobu Ito.
Ruling out that it would be ultra-low cost car, Mr. Ito said Honda was working on the car to address the need and demand of the high-volume segment in the country. It was being designed keeping in mind the demand from Asian markets, with India as its key market.
He neither gave any timeframe for the launch of the small car nor disclosed its pricing strategy. The car would be smaller than its recently launched premium hatchback Jazz.
“We are focussing on Indian and Chinese markets for future growth as sales in developed markets like the U.S. and Europe have remained sluggish due to the global economic downturn. Selling cars has become difficult the world over, so we have to prioritise the market. Our top priority is China and India where we would like to grow as much as possible,” he added.
Over 40 per cent of Honda’s two-wheeler sales came from India through its partner Hero Honda Motorcycles and subsidiary Honda Motorcycle and Scooter India Ltd., and they wanted to replicate this success story in cars also, he added.
Referring to the failure of Honda hybrid car ‘Civic’ in India, Mr. Ito said in Japan hybrid cars were doing well as the government there was offering some tax benefits and scrap incentives.
“Hybrid is an expensive technology; and to ensure its success, governments need to promote them as eco-friendly cars and incentivise its buyers. We are working on developing hybrid cars, which are cheaper and lighter so that its price could be reduced,” he disclosed.
