Honda_Newsmall_Concept_1_codename_2cv

Honda’s New Small Car to be Priced at Premium

Honda Siel Cars India Limited will be introducing its next small car in the Indian market by early 2011.
However, the car will not target the “volume-driven small car segment.” The upcoming hatchback car of Honda will be positioned above the volume market.

There has been a talk about this small car segment as the volume market, but Honda sees its position just above this category. The official made it clear that there won’t be sedan version of the ensuing car. The proposed car was displayed at the Delhi Auto Expo in this January and it was informed that the official launch would take place in 2011 at the price tag of Rs5 lakhs. It is to be noted that in the Honda’s tradition the cheapest car is Jazz [images] offered at Rs7.11 lakhs in India. The newly appointed CEO and President of Honda India revealed that the company’s stature hereinafter would be on 80%localization of components, to be assembled in India for the competition led market.

Honda is now struggling in the Indian market. In the first quarter of 2010, sales of Honda models dipped 3% to 21,764 units against 22,376 units at the corresponding period last year. In March, sales declined 19.54% to 5,928 units. In April, sales declined 2.13% to 3,578 units.
Regarding the declining sales, Mr. Ike said, “It is a matter of concern no doubt, but we are not a volume player.”
Honda is now planning to increase its sales up to more than 100,000 units in the next one year from the current 60,000 units per year.
(http://autoten.com/2010/03/16/2011-honda-new-small-car-nsc-or-codename-2cv-rendering/)

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