Honda Cars India Limited (HCIL), a subsidiary of Japanese auto giant Honda Motor Co., is set to introduce 3 or 4 new diesel models, including a compact Utility Vehicle (UV) within a span of two to three years in the domestic market. The latest development has stemmed from the company's desperate measures towards recuperating for the lost sales in Indian market. The lack of strong diesel powered vehicles in its arsenal has hurt HCIL comprehensively, with the rival automotive players capitalising and snatching sales away from the Japanese firm.
Hironori Kanayama, President and Managing Director (MD), HCIL, refused to divulge any implicit information regarding exact make and configuration of the upcoming models but said, "We have very ambitious plans for diesel in the coming years. The new engine will drive all new models lined up for the future, including the new small sedan next fiscal. We hope to have at least 3-4 diesel models in the next two years, we are thinking of a sequence and which model we will fit the engine for the launch."
According to Kanayama, HCIL has already invested in a new state-of-the-art engine assembly line at its Rajasthan plant, which can deliver output as per the demand. However, Kanayama refused to shell out the actual yield and capital invested on the new facility by HCIL. He further added that the company is evaluating different growth prospects for Indian passenger car market and is contemplating the possibility of venturing into the compact UV segment.
Expressing his views on the company's future strategy for the Indian automotive sector, Kanayama said, "India is a small car market with over 50 per cent of volume coming from compact cars. So we will explore all options, (sub four meter) sedans and utility vehicles. We will be looking at optimisation of the existing platform to reduce development time and cost."
Reportedly, the company witnessed a drop of 8.46 per cent in its annual sales figures during 2011-12 as compared to the corresponding period of 2010-11 fiscal. The addition of Brio hatchback to its Indian portfolio has helped HCIL in wrapping up sales of 34,440 units between the first six months of the ongoing 2012-13 fiscal, thereby recording a surge of 47 per cent as against the same period last year.
Commenting on HCIL's export operations, Kanayama said, "We do see India as a key export hub in the future. India fits well to offer 'best cost and best quality products and there was a demand for products in markets of South Africa and adjoining markets for a product like Brio. The exports numbers will help us in bringing economies of scale, which eventually the customer will benefit."
HCIL has been ridiculed by top industry boffins for its depleted Indian diesel portfolio, which is cited as one of the primary reasons behind the company's recent loss of market share. The arrival of new diesel run products could breathe a new lease of life in the company's marketing campaign towards boosting its sales in the country and considering the recent shift towards compact UVs, HCIL seems to me moving in the right direction.
