After the successful launch of the new entry level sedan Amaze, Honda Cars India Ltd. plans to reveal many new diesel vehicles, along with two new Utility Vehicles (UVs) within the next two to three years. One of these vehicles would be a Multi Purpose Vehicle (MPV) codenamed 2NH, which would be based on the Brio platform and could arrive by the end of 2014. Similarly, the other would be a compact Sports Utility Vehicle (SUV) sharing the Jazz platform.
Commenting on future strategies for the country, Hironori Kanayama, Managing Director (MD), Honda Cars India Limited, said, “Our counter attack in India has just begun with the Amaze. We have a lot to do. Small cars, UVs are all under study. The SUV market is the fastest growing segment and we are studying every segment surrounding the UV space, small or premium. You can anticipate some interesting moves from Honda." During FY 2012-13, India's UV segment went up by 50 per cent, due to which every car marker is thinking of entering this space. Meanwhile, Honda is already preparing the next-generation Jazz hatchback and the diesel version of City for the year 2014.
In terms of competition, the MPV and compact SUV from Honda will directly take on a battle against established segment players such as Maruti Suzuki (Ertiga), Ford and Mahindra & Mahindra. Even Fiat-Chrysler has planned to roll out the complete range of Jeep SUVs in the Indian market. With the new range of models, Honda Cars India plans to increase its share from the current 10 per cent to 50 per cent of the domestic passenger vehicle market.
As per a source aware of financial developments at Honda Cars India, this is what was declared, “With five new models that come along with a diesel option and having presence in the growing UV space, Honda Cars India is aiming to cross 2 lakh units of sales in FY15. And once the 2-lakh-unit sales is crossed, the company will break into profits after almost 5 years."
It has been a tough few years for Honda in the Indian auto market, with brands such as Volkswagen and Hyundai trumping it due to availability of diesel models. It is hoped that with the new diesel onslaught, Honda Cars India will be able to regain some of its previously large market share.