Honda shifts gear, to launch made-in-india SUV in 2023
Says customer preference has shifted to SUVS
In yet another attempt to find its feet in the India market, Japanese carmaker Honda is going to launch a sport utility vehicle (SUV). The product, likely to be launched in 2023, is going to be made in India, but is most likely to be exported to other countries.
“We acknowledge the customer preference shift to SUVS. The market share of the SUV segment is growing in India. We have studied the trend. I can confirm that a new SUV from the Honda stable is under development. This brand-new SUV is focused only for the India market,” said Gaku Nakanishi, president and chief executive officer, Honda Cars India.
In the last five financial years, from 2016-17 to 2020-21 (FY21), the SUV segment has witnessed growth of 35 per cent, 49 per cent, 33 per cent, 15 per cent, 20 per cent, respectively — higher than the overall passenger vehicle segment.
Honda currently has the WR-V as the only product to offer in the compact SUV segment. But it has failed to become a choice for buyers with its popularity steadily declining.
Only 708 WR-VS were sold in July, compared to segment leaders like Maruti’s Vitara Brezza and Hyundai’s Venue, which sold 12,674 and 8,185 vehicles, respectively. While Honda didn’t divulge details on the size and pricing of the SUV it is planning to launch, sources expect it to be in the mid-suv segment, where it will compete against the likes of Hyundai’s Creta, MG Motor’s Hector, and Kia Motors’ Seltos.
“The compact SUV segment is too cluttered with a strong line-up like the Brezza, the Venue, and the Nexon. Honda may want to target the mid-sized SUV segment, rather than have a product compete against its own WR-V,” said an executive of a rival company.
Last year, Honda in a scalingdown of its business, ceased the production of the CR-V and the Civic from its India portfolio, following the company’s decision to cease manufacturing operations at its Greater Noida plant. It instead shifted the production of the City to its Tapukara, Rajasthan facility. This left the firm with two popular selling models, the City and the Amaze, which are leaders in the sedan segment.
In fact, Honda launched a facelift of the Amaze model with a new front grille and automatic LED projector headlamps. This, the company believes, will keep the product as one of the leaders in the sedan segment till it rolls out the new SUV.