Honda plans rival to Maruti Alto, Hyundai Eon

Honda is gearing up to take on the Maruti Alto, the country's largest selling car. The Japanese major is studying the idea of getting in a low-price small car below the Brio compact, apart from driving in entry-level sedan Amaze in India. For this, the company is looking into a variety of options, which include an all-new car and even the 660cc famed Kei cars that it makes for the domestic market in Japan.

Hironori Kanayama, president & CEO of Honda Cars India, said the entry car market will continue to remain strong, prompting the company to look at the option actively. "We are studying the market... (but) we do not have such a small engine, except for the Japanese market where we have the 660cc Kei cars," Kanayama told TOI, adding that the option of 660cc engine may not be viable in India, considering the different kind of liking displayed by customers here. "The taste of the Japanese customer and the Indian customer is totally different (and) so we cannot bring that model (Kei cars) into India."

He said the company is finalising the direction to be taken for the development of the entry compact car. "We need some time to make a decision on what needs to be done in this market. But we know that this market will be very stable, and will grow more," he said when speaking of the market below its Brio compact, which carries an entry price of Rs 4.12 lakh in Delhi. 


Honda's plans to go for the entry segment of the Indian car market can have major repercussions for other industry players. Currently, the segment is dominated by cars under Rs 3 lakh and manufactured by companies like Maruti (Alto), Hyundai (Eon) and Tata Motors (Nano) and other companies are absent from the category. While the Maruti Alto sells over 20,000 units on an average, the Eon clocks around 8,000-9,000 units monthly. Analysts say a product from any company seen as upmarket by customers can see a larger adoption of its model, directly hitting companies like Maruti and Tata Motors.


Honda has so far struggled to keep prices of products under check, but a recent focus on localisation and India R&D has made the company confident of making cars at competitive cost. The company has made a senior-level appointment for this purpose and has brought in Yoshiyuki Matsumoto as representative of development, purchasing and production in Asia & Oceania Region. Matsumoto will be based in India and his chief responsibilities include keeping production cost under check.


The company is investing Rs 2,500 crore as it doubles production to 2.4 lakh units annually from the current 1.2 lakh units. Kanayama said the focus on indigenization and local R&D will help contain costs during the development of the entry compact car. "Yes, it will accelerate our localization speed."

Asked whether the company will develop an all-new engine for the new small car, Kanayama said that appears to be the most probable option. "We have not yet made any decision, and this depends on the market and the result of our study. If necessary, Honda can develop the other capacity of the engine."

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Honda plans rival to Maruti Alto, Hyundai Eon

Honda is gearing up to take on the Maruti Alto, the country's largest selling car. The Japanese major is studying the idea of getting in a low-price small car below the Brio compact, apart from driving in entry-level sedan Amaze in India. For this, the company is looking into a variety of options, which include an all-new car and even the 660cc famed Kei cars that it makes for the domestic market in Japan.

Hironori Kanayama, president & CEO of Honda Cars India, said the entry car market will continue to remain strong, prompting the company to look at the option actively. "We are studying the market... (but) we do not have such a small engine, except for the Japanese market where we have the 660cc Kei cars," Kanayama told TOI, adding that the option of 660cc engine may not be viable in India, considering the different kind of liking displayed by customers here. "The taste of the Japanese customer and the Indian customer is totally different (and) so we cannot bring that model (Kei cars) into India."

He said the company is finalising the direction to be taken for the development of the entry compact car. "We need some time to make a decision on what needs to be done in this market. But we know that this market will be very stable, and will grow more," he said when speaking of the market below its Brio compact, which carries an entry price of Rs 4.12 lakh in Delhi. 

Honda's plans to go for the entry segment of the Indian car market can have major repercussions for other industry players. Currently, the segment is dominated by cars under Rs 3 lakh and manufactured by companies like Maruti (Alto), Hyundai (Eon) and Tata Motors (Nano) and other companies are absent from the category. While the Maruti Alto sells over 20,000 units on an average, the Eon clocks around 8,000-9,000 units monthly. Analysts say a product from any company seen as upmarket by customers can see a larger adoption of its model, directly hitting companies like Maruti and Tata Motors.


Honda has so far struggled to keep prices of products under check, but a recent focus on localisation and India R&D has made the company confident of making cars at competitive cost. The company has made a senior-level appointment for this purpose and has brought in Yoshiyuki Matsumoto as representative of development, purchasing and production in Asia & Oceania Region. Matsumoto will be based in India and his chief responsibilities include keeping production cost under check.

The company is investing Rs 2,500 crore as it doubles production to 2.4 lakh units annually from the current 1.2 lakh units. Kanayama said the focus on indigenization and local R&D will help contain costs during the development of the entry compact car. "Yes, it will accelerate our localization speed."


Asked whether the company will develop an all-new engine for the new small car, Kanayama said that appears to be the most probable option. "We have not yet made any decision, and this depends on the market and the result of our study. If necessary, Honda can develop the other capacity of the engine."

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Honda Amaze to lock horns with Swift DZire soon in India

Honda Cars India Limited (HCIL), a subsidiary of the Japanese multinational automobile giant Honda Motor Co., is going to launch its much awaited Amaze compact sedan in the domestic market on April 10, 2013. Experts believe that the car will take head on the entry level sedan champion, the Maruti Suzuki Swift DZire upon its arrival in the country.

Maruti Suzuki Swift DZire comes powered with a 1.2 litre, K-Series petrol engine rated with a maximum power and torque outputs of 86 bhp and 114 Nm, respectively. Further, the diesel trim comes fitted with a 1.3 litre DDiS engine that churns out a peak power of 74 bhp and highest torque of 190 Nm.

On the other hand, Honda Amaze is anticipated to come fitted with a 1.2 litre i-VTEC and a 1.5 litre i-DTEC engines powering its petrol and diesel models, respectively. The 1.2 litre i-VTEC will roll out maximum power close to 85 bhp, whereas the 1.5 litre i-DTEC belts out an impressive peak output power of 98 bhp. The drivetrain could be equipped with a 5-speed speed manual gearbox and an option of 5-speed automatic transmission. Hence, the Amaze diesel definitely has an upper hand over the Swift DZire diesel, in terms of engine performance. Further, Honda has claimed that its 1.5 litre i-DTEC engine delivers a best-in-class fuel efficiency of 25.8 kmpl, which will make Amaze the most fuel efficient sedan in the country.

At present, the Swift DZire is the best selling model in the entry level sedan segment of the Indian auto market. Hence, the Honda Amaze has a huge onus to displace Swift DZire from the top position in the entry level sedan segment. Maruti Suzuki offers its entry level sedan to domestic buyers at price tags between Rs. 4.9 lakh and Rs. 7.4 lakh. Sources suggest that Honda Cars India could also launch its Amaze range within a price range of Rs. 6 to 8 lakh in the country. Therefore, a lot of fireworks are expected when the two entry level sedans indulge in a direct face off in the Indian auto market.

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Honda Brio Amaze diesel sedan spotted again

The Honda Brio Amaze is just a few days away from its launch and is making a lot of news. Honda India has high hopes with the new car and there are good chances that the new sedan will bring the former glory back to the Indian subsidiary of the Japanese car maker giant.

The Honda Brio Amaze will become the first Honda car in India to get a diesel engine and will battle it out against the likes of Maruti Suzuki Swift Dzire and the Chevrolet Sail. The car has been caught testing on numerous occasions and here is one more image of the Honda Brio Amaze compact sedan at a Honda India dealership.

The i-DTEC diesel engine that will power the Honda Brio Amaze sedan has  been developed alongside the much publicized Honda 1.6 litre EarthDreams engine that powers the UK spec Civic and CRV. The 1.5 Liter diesel engine has an all aluminium construction and is good for segment topping power output of 100 PS with the max torque figure pegged at 200 Nm. The diesel engine has an ARAI certified fuel efficiency of a staggering 25.8 Kmpl and the car seems all poised to dethrone the high selling Swift Dzire from the top of the entry level sedan segment.


The petrol variant of the Honda Brio Amaze will be powered by the same 1.2 litre i-VTEC engine that powers the Brio hatchback. This engine is good for 90PS and will enable the Amaze to battle it out against the 1.2 litre K series equipped petrol variants of the Maruti Suzuki Swift Dzire.

The new car will be launched on April 11 and thanks to being less than 4 metres in length, might come with an attractive price tag.

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Honda GEAR concept previews trendy city car ambitions

Honda’s eye-catching NSX concept unsurprisingly caught the most attention last week, but the Japanese car company also had a fetching urban alternative in the shape of the Honda GEAR concept. Previewed not in Detroit but at the Montreal International Auto Show, the Honda GEAR is an angular sub-compact that the company believes is ideal for “young, urban, Gen-Y lifestyles” – or, in other words, the car the Honda Fit really should’ve been.

Technical details of the GEAR concept are in short-supply, with Honda instead preferring to focus on the styling decisions its US R&D team took. The claim is that the GEAR is inspired by fixed-gear bicycles, as well as being “simple and utilitarian, but also customizable, connected and full of personality.”


Great buzzwords, though they perhaps unnecessarily dress up Honda’s real goal with the GEAR: to create a car that’s “cool” enough for young drivers to covet, but also affordable enough for them to buy. Honda isn’t saying exactly how much it envisages any production version of the GEAR costing, mind.


Interior shots haven’t been released (it’s possible Honda hasn’t even designed the cabin yet), and the degree to which the GEAR is connected is also unstated. If, though, the company could bring a distinctive four-seater to market, preferably a hybrid, at a price point – and with running costs – undercutting the roughly $15,000 starting price of the Fit, it would certainly get its fair share of attention.

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Honda, Toyota, Ford posted a cumulative loss of Rs 770 cr in FY12

Global carmakers who have been in India for over a decade now continue to have it rough. Three MNC auto majors racked up a collective loss of some Rs 770 crore in fiscal year 2012, as per the latest numbers filed with the Registrar of Companies (RoC).

Honda Cars India leads the pack with a Rs 604 crore splash of red ink on its balance sheet, almost three times the loss of the previous year.


Toyota slipped into the red with a loss of Rs 27 crore after notching up a healthy profit of Rs 222 crore in fiscal year 2011; and Ford India reported a 35% higher loss of Rs 140 crore as against 107 crore in the previous year.


Fiat India, meantime, has extended fiscal year 2012 by six months to help it start with a clean slate with a six-month fiscal year from October 2012 to March 2013, after setting off accumulated losses of Rs 300 crore.

For Ford and Honda, which entered India in the 90s with premium models before eventually entering the mass market a few years ago, the road to profits is turning out to be a long one, indeed.

Company officials justify the losses saying they are still in investment mode, expanding capacities and setting up new factories. The journey into the black will involve new models in new segments to have a well-rounded portfolio, increasing localisation efforts to bring down costs and selling overseas.

Honda clearly had the biggest setback, with losses ballooning from Rs 212 crore in fiscal 2011 to Rs 604 crore last year. Natural calamities in Japan and Thailand led to the non-availability of critical parts, which have taken a toll of the financial performance with sales turnover falling by roughly 20% to Rs 3,185 crore.

Sales volumes dropped by 8.5% to 54,526 units, as the gap between diesel and petrol prices widened - Honda has a nil presence in diesel in India, with the soon-to-be-launched Amaze sedan set to be its first model in this segment.

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Toyota & Honda spice up small cars for the U.S. market

Japanese automakers are spicing up their compact and subcompact lineups in the United States with Toyota Motor Corp s Furia concept car hinting at

more aggressive styling for the 2014 Corolla and Honda Motor Co taking subcompact cars to the next level with its Fit-based SUV.

Toyota  Japan s biggest automaker  gave a glimpse of what the new Corolla  likely to go on sale later this year  could look like when it unveiled the Furia concept sedan this week at the Detroit auto show. The orange Furia has an aggressive front face with sharply angled headlights and a low center of gravity  design features that already have been applied to some recent models like the Avalon and the Auris hatchback and could help attract younger buyers.

"It s only a concept  but the Furia sends a clear message where we are going in the future. Not only is the styling more expressive  but also reflect our overall approach to the compact segment in every way " Bill Fay  the group vice president and general manager of the Toyota Division at Toyota Motor Sales U.S.A.  said on Monday. The Corolla is Toyota s top-selling model globally and the second most-popular Toyota vehicle in the United States after the Camry. Toyota sold 290 947 Corollas in the United States in 2012  up 21 percent from a year earlier.


Honda unveiled a concept urban SUV that will share platforms with the Fit subcompact car. Honda has been vocal in its emphasis on small cars  aiming to secure a quarter of its global sales with the Fit series by the financial year ending March 2017. The Fit is also known as the Jazz.

Japan s third-biggest automaker  Honda aims to sell 6 million vehicles globally by March 2017  a jump from the current 4 million  and is set to start selling the remodeled Fit by late 2013 in Japan.


"There is no doubt that increasing fuel efficiency and making cars smaller to cut materials and energy used to build them is a trend in the auto industry " Honda Chief Executive Takanobu Ito told reporters on Monday.


"The path that cars should take in the future cannot be discussed without the development of small cars  and this is not just for Honda."

The Fit-based SUV  which will be manufactured in Honda s new Celaya plant in Mexico as well as in Japan and Asia  is set to go on sale in Japan later this year and in the United States in 2014.

Nissan Motor Co  Japan s second-biggest automaker presented the Versa Note compact at the Detroit show on Tuesday.


The Versa Note  which is a hatchback companion to the Versa sedan  is set to go on sale in the United States in the summer with a starting price of $13 990. Nissan sold 113 327 Versa vehicles in 2012 in the U.S. market  up 14 percent from a year earlier.

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Honda to assemble new CR-V in India to keep price competitive

Japanese carmaker Honda plans to assemble its sport utility vehicle CR-V in India to benefit from lower taxes and keep the price tag competitive when the fourth generation CR-V is launched next month.

Honda Car India will bring the new SUV with 2.0 litre and 2.4 litre petrol engines options just like the old CR-V, which has already been discontinued, a trade official said.


The price of the new vehicle will be lower than its outgoing sibling that was available in the price band of 22.91 lakh to 25.15 lakh (ex-showroom, Delhi) and was imported directly from Japan, the person said.

The local assembly of the new CR-V will be done at Honda's Noida plant. Honda Car India did not confirm the CKD strategy, but confirmed that the new CR-V would hit the market in February.


"We will be launching the all-new fourth generation Honda CR-V next month in the Indian market. All the details of the new car will be shared at the time of the launch," a company spokeswoman said. Honda CR-V, which used to be the segment leader, has in recent years lost out to diesel-powered competition that include Mitsubishi Outlander, GM Captiva, Hyundai Santa Fe, Renault Koleos and Toyota Fortuner in the 18-25 lakh price band.


It will be a tough task for the new CR-V to catch up with market leader Toyota Fortuner. Priced 21.36 lakh to 22.93 lakh in Delhi, Fortuner runs on diesel, which is around 25% cheaper than petrol.


Analysts tracking the automotive sector say that fuel price plays a major role in the success as most SUV are guzzlers. "Given the current scenario there is hardly any petrol SUV model that charts any decent sales. The Fortuner or the BMW X1 or the Audi SUV that are currently the hot sellers all have diesel as the common median for their sales traction," said a Mumbai-based consultant working with a multinational.

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Honda unveils small SUV at heart of huge expansion

Honda unveiled Monday a stylish "urban SUV" concept at the heart of a small car onslaught aimed at helping the Japanese automaker boost global sales by 50 percent over the next four years.

An expansion of the already popular Fit family, Honda said the muscular yet compact car will offer a great alternative to customers who want the versatility of a sport utility vehicle with the size and handling of a small car.

"With aspirational and sophisticated styling, this urban SUV concept showcases the dynamic sculpting and vibrant character lines of a sporty coupe in the confident, capable stance of an SUV," American Honda sales chief John Mendel told a press conference at the Detroit auto show.

"Younger buyers in particular are looking for the functionality of an SUV in an efficient, fun-to-drive package. And we think this vehicle is right on the money."


The new model will hit the US and Japanese markets in 2014 following the launch of the updated Fit before being rolled out worldwide.

Small cars like the Fit, City and urban SUV will the be "key to our future," Honda chief executive Takanobu Ito said as he unveiled the concept car.


Honda forecasts that sales of this "global compact series" will expand from about 500,000 today to 1.5 million for the fiscal year ending in March 2017, Mendel told AFP.


That will help Honda drastically increase sales from four million to six million vehicles during the same period.

The remaining growth will come primarily from its core global models: the Accord, Civic and CRV.

"We see small continuing to grow," Mendel said in an interview after the launch.

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Honda Accord, 2013: Family sedan turned luxury car

Now approaching middle age, the Honda Accord has been among the top-selling cars in the United States for nearly 25 years.

The first generation was launched on May 7, 1976 as a three-door hatchback with 68 horsepower, a 93.7-inch wheelbase and weighing about 2,000 pounds.

For 2013, after several manufacturers began to match the Accord’s quality and offer better warranties, Honda acquiesced and debuted a complete redesign. Among a vast array of other attributes, the Accord now has a 109.4-inch wheelbase and weighs 3,559 pounds.


The Accord, available in more than a dozen configurations and as a coupe and sedan, has come a long way, including the V6 Touring edition, my weekly driver. It featured a 24-value, 3.5-liter, V6 with 278 horsepower and six-speed automatic transmission.

Yes, it’s still a Honda Accord. But what once was an upgraded Civic known for its gas mileage and low maintenance, is now in its ninth generation and a far different car.


Since The Weekly Driver began, I’ve reviewed the Honda Accord seven times, dating to the 2003 model. With the 2013 model, the aforementioned V6 Touring, I now view the stalwart sedan with a new point of view.

The reliable, keen resale value family sedan has become a luxury car disguised as a sedan. The newly designed Accord features a simple, but hard-to-decipher persona. Its more sleek, chiseled exterior styling makes the Accord appear smaller. Yet the interior is more spacious with room for five adults.

My weekly driver and the EX model feature Honda’s new LaneWatch technology. It’s a small video camera positioned underneath the passenger-side mirror that displays on the eight-inch console monitor what’s in the driver’s blind spot. It’s engaged when the turn signal indicator is activated or it can be adjusted to stay on.

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Honda Siel Cars India changes name to Honda Cars India

NEW DELHI: Japanese auto major Honda has changed the name of its Indian operations to Honda Cars India Ltd following the break up of its joint venture with Usha International of the Shriram Group.

The erstwhile JV, Honda Siel Cars India (HSCI), will now become a 100 per cent subsidiary of Honda in India.

"The name change will be with immediate effect as per the fresh Certificate of Incorporation issued by the Registrar of Companies, NCT of Delhi and Haryana," Honda Cars India Ltd (HCIL) said in a statement.


Last month, Honda bought out Usha International's entire 3.16 per cent stake for Rs 180 crore in the joint venture, which was established in December 1995.


HCIL President & CEO Hironori Kanayama said the company was committed to the Indian market and would continue to bring latest products from Honda.

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Honda City automatic now available in cheaper S variant

Priced at Rs 9.10 lakh, the S variant trades a few creature comforts for a cheaper price tag. 

Up until now, the City automatic was available only in top-of-the-line V variant which costs nearly Rs 11 lakh. Now though, Honda has quietly introduced a cheaper version to grab hold of a bigger share of the not-so-hot petrol automatic sedan segment.


Priced at Rs 9.10 lakh (ex-showroom, Delhi), the City S-AT costs about Rs 70,000 more than the similarly-specced S-MT manual. The car loses out on a few creature comforts although the 5-speed gearbox still comes standard with paddle shifters. It is powered by a 1.5-litre i-Vtec petrol engine producing 118PS of power and about 145Nm of torque.

As for the competition, the Verna automatic still rules the roost plainly because of the fact that it is also available with a diesel engine. Fiesta automatic on the other hand comes with a segment-first advanced dual-clutch gearbox, however, the car is nowhere close to the City automatic when it comes to overall sales.

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Production of Honda Civic in India halted: Bitter truth or blessed illusion?

If reports are to be believed, production of Honda Civic, one of the highest selling cars in the world, has been discontinued from the Indian automobile sector. This news has come as a shock for Civic enthusiasts all over the country. Honda, however, has not been available to comment on the same.

The news came from Hormazd Sorabjee, the Editor of AutocarIndia. Apparently, Honda has already stopped importing completely knocked down (CKD) kits and is set to stop production once the remaining units are built. In another couple of months, the local dealers are expected to clear stocks and the company shall cease sale of the car thereafter.

According to research, Honda Civic was the eighteenth largest selling car model in the first quarter of fiscal year 2012. However, the Civic available in other parts of the world is vastly different form the model available in India. What is being perceived as a disheartening move by Honda so far could be a blessing in disguise. In the past, other cars like the Hyundai Elantra and Maruti Suzuki Swift have gone off production for a short duration of time only to emerge with new improved versions.


There is high probability of Civic getting a facelift as Hyundai Elantra, which is scheduled to be launched this month in India, will pose tough competition to the car as it falls in the same price bracket. With fluidic design, a diesel variant and various other add-ons, the Elantra might just prove more than a match for the Honda Civic, which is still only riding on luck with its loyal customers. At the same time, Chevrolet, whose profits are mainly going downhill, has somehow realised some of its potential with the Cruze, which is again stiff competition for the Civic.

At such a time, it would not be a bleak observation to say that Civic is not performing in India as per its standards all over the world. Hence, to put this car off production might not be a great option for Honda which really needs to rev up its sales numbers. Given the astounding worldwide sales volumes of the Civic, the corporation might just be eyeing to capture the Indian markets with a revamped Civic.

The other sedans from Honda's stable have done well so far. City has been a hot favourite among many over the years and the Accord has established itself as a status symbol. If the Civic is able to top the list in D-segment, Honda can secure its place in the Indian passenger car segment.

Amid speculations, rumours are also afloat that the production of Hyundai Accent is being stalled. Poor sales of the car in the last few months are touted to be the reason for this compelling step. Only time can tell whether the car will no more be rolled out from showrooms in India or a possible revamped version of the car is in the pipeline.

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