Honda comes with a new car in India

September 27, 2011   ·   0 Comments

Japanese car major Honda on Tuesday announced its foray into the highly competitive low-price compact car segment in India with the launch of its Brio model, priced between Rs 3.95 lakh and Rs 5.1 lakh (ex-showroom, Delhi). It will be interesting to see how they strategize the marketing for their new car.

www.stockssavvy.comThe company, which is present in India through a joint venture with the Siel group, Honda Siel Cars India, said it is also targeting revenues of Rs 112 crore this fiscal from the export of auto components from India.

“With Brio, we will be entering a new segment for the first time in India. It has been designed and developed specially to meet the needs of customers here,” HSCI president and CEO Takashi Nagai told reporters here.

He said the company had promised to price it less than Rs 5 lakh and has been able to do this through cost-efficiency measures and high localization of components. However, the top-end variant of the vehicle will cost Rs 5.1 lakh. The Brio is at present about 80 per cent localised and over the next few months, it will reach 90 per cent. This has been key to the pricing strategy of the Brio.

The Brio will compete with the likes of the Hyundai i10, Maruti WagonR and General Motors Chevrolet Beat, which are priced in a similar range.

The Brio will be available in four variants. Nagai said the company expects a large chunk of the customers for the Brio to come from smaller cities, whereas demand in bigger cities is likely to be for existing models such as the City, Civic and Accord.

Commenting on the development of the car, which is powered by a 1.2-litre petrol engine. The company also exports components for the City and Jazz to Malaysia and Indonesia.

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Rajesh Singla

Rajesh is the founder & CEO of Stockssavvy, Stocks analyst,financial advisor by choice,software engineer by fate,biker,gamer,cricket lover n enthusiastic person. He believes in doing things not just to get by but to get Ahead...

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