Honda SIEL India Ltd. is working hard to launch a small car in India to be launched next year. The concept of the Honda Small Car was very elegantly displayed at the Auto Expo 2010 in Delhi in January 2010.
The segment which Honda is eyeing is not the economy cars segment which is driven by small cars like Maruti Wagon R, Ford Figo, Chevrolet Beat, Hyundai i10 , Volkswagen Polo etc. Rather, Honda is trying to place the car price starting close to Rs. 5 Lakh ex-showroom, which makes it an expansive deal compared to the more affordable small cars already in the market. This may prove to be a wise move as the people looking for exclusivity and more premium small cars will be more attracted to the Honda Small Car rather than more common and affordable options. Honda fans will also prefer to go for a small car by Honda compared to other small cars. However on the other hand, the sales numbers will remain low for such a car leaving Honda with lesser revenues compared to the counterparts.
The cheapest Honda small car in the market at present is Honda Jazz which comes for more than a Rs. 7 Lakh ex-showroom price. This high price is the reason for so low sales of the Jazz. This new car in Rs. 5 Lakh segment may help to improves sales comparatively when considering Honda Jazz sales numbers in India.
The segment which Honda Small Car comes close to is the Skoda Fabia, Hyundai i20, Maruti Swift etc. The exact pricing will be released close to the launch and the prices may move father upward because of input costs of tax structures as well. To keep an eye on the updates on Honda Small Car, sign up for our free email newsletter.