In contrast, Honda Motor India plans to expand its fleet next year by introducing a new mid-size SUV that will usurp segment leaders such as the Hyundai Creta and Kia Seltos.
Honda Automotive has reaffirmed its commitment to India amid rumors that the Japanese auto giant may soon close stores or discontinue some of its existing models from its lineup. products next year. The automaker said it has no plans to close its business in India and, in fact, it plans to expand in the coming days. Speaking to PTI news agency, Takuya Tsumura, President and CEO of Honda Motor India, said, “We are staying. Why are we leaving a market that is currently the second largest market? We’ve been here for over 20 years, so there’s no reason to leave.”
Honda Cars currently offers models such as City, Amaze, WR-V and Jazz for customers in India. The Japanese auto giant launched a hybrid version of its flagship City sedan in a hybrid avatar earlier this year. Next year, the Japanese automaker will add a new mid-size SUV to its lineup. The new SUV will usurp segment leaders such as the Hyundai Creta and Kia Seltos.
The reason for the rumor that Honda Cars is leaving India is the decision to stop production of the Civic and CR-V in December 2020 following the closure of the production facility in Greater Noida. Honda Automotive said the decision is part of its global initiative to restructure. “We’ve done some restructuring over the past few years and it’s been a rough time, but I can say it’s done, the company now has a healthy constitution,” Tsumura said. more. Besides the Greater Noida facility, Honda Cars has another manufacturing center located in Tapukara, Rajasthan.
Honda Cars did not have much success in the SUV segment despite trying out models like CR-V and WR-V. While the CR-V has been discontinued before, WR-VU Small SUVs have yet to make a mark in a segment dominated by Maruti Suzuki, Tata Motors and Hyundai. Honda, however, appeared confident about the prospects of the upcoming Creta, Seltos competitor. “It’s hard to be the number one player but there’s still going to be some demand there so we wanted to hit that area,” Tsumura told PTI.
The new SUV will likely receive an e:HEV hybrid powertrain that also powers the new City Hybrid sedan. Besides the Korean SUVs, its direct rival will be the Toyota Urban Cruiser HyRyder and Maruti Suzuki Grand Vitara SUV, offered with powerful hybrid options.
First published date: September 20, 2022, 10:06 AM IST