Home ECONOMY Honda mulls compact SUV for Indian market

Honda mulls compact SUV for Indian market


Kolkata, July 21:

The Indian division of Japanese carmaker Honda is considering introducing a compact SUV in the country and has undertaken a study on it, an official said.

HONDA“We are in an advanced stage of a study on the compact SUV space and will take a call based on the study’s outcome. The compact SUV is a growing market,” Anita Sharma, assistant vice president of the marketing division at Honda Cars India Ltd., told mediapersons here.

She said the annual market size of the compact sports utility vehicles (SUV) segment in the country is pegged at 8,000-10,000 units per month.

The company, which registered a growth of 41 percent during 2014-15, hopes to sell around 240,000 units this fiscal.

“We are investing Rs.380 crore to step up our plant’s capacity in Rajasthan,” said Hiroyuki Shimizu, the director and senior vice president of marketing and sales of the company.

He said the company’s upgraded third-generation Jazz cars is the best-selling model for the company and it has already exported some of it to South Africa last December.

“This year, our export target out of India is 10,000 units. Also, we have plans to increase our Indian outlets from the existing 232 to 300,” he said.

The company is in the process of acquiring land in Gujarat for a possible third plant but officials refused to divulge any details on the development.

“We are in the process of buying land but would not like to discuss it,” Sharma said when asked over the status of a possible upcoming plant.

The company said it would not be coming up with further car launches this year.

“Next year, we may facelift Accord and Civic models,” Shimizu said.

The company on Tuesday launched the facelifted Jazz for the Kolkata and adjoining markets. The car’s localisation has increased from the former 72 percent to 95 percent.

It said the car is meant for people in the age group of 25-35 years with a monthly earning between Rs.50,000 and 100,000. (IANS)