Honda Motor Co, Japan’s second largest car maker, plans to enter the small car market in India to meet the demand from the country as well as the other emerging countries. It aims to develop an entry level car below the Fit model in two to three years.
The parent company Chief Executive, Takeo Fukui, spoke to the press in Tokyo and expressed company’s future plans for better growth of the company. He also said that the company plans to delay the introduction of medium to large-sized diesel models in the United States and Japan to concentrate on hybrid and small cars.
Honda marks its presence in India as Honda Siel Cars India limited. It is a leading manufacturer of premium car models in India. The company recently slashed prices of its models by up to Rs. 31000 in response to the government’s move to cut CENVAT by four percent. However, it did not reduce the prices of its SUV model, Honda CR-V. It also postponed its plans of the proposed price increase on its models in January 2009.