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Honda Small Car to be Launched by Next Diwali

By Motortrend India Staff   |   22 November,2010

Honda Motors is planning to launch its India-specific small car during the next festive season (Diwali) in 2011. The Japanese carmaker hopes the small car to become the second pillar in the Indian market after the success of the Honda City.

Tatsuya Natsume, Director, Marketing, Honda Siel Cars India, said, “We will be going into commercial production in 2011 and aiming to hit the Indian roads with our small car in the festive season (Diwali).” Honda is also planning to start exports to other markets including Sri Lanka, Bangladesh and Bhutan next year.

The Honda small car will be positioned below the Jazz and will be manufactured at the company’s Greater Noida facility. The new small car will be priced below Rs 5 lakh and will be positioned in the B+ segment. Speculations have it that the small car would be powered by a 1-litre VTEC engine, while the 1.2-litre engine from the Jazz is also a possibility.

“Localisation is important for small car to avoid currency fluctuation. We will be looking at procuring a larger amount of components locally,” said Natsume. The company is looking at around 80% localisation on the small car.

Honda is investing around Rs.250 crore in its Tapakura plant in Rajasthan to take care of the production of cylinder heads for the small car. Currently the Rajasthan plant manufactures engine parts and body panels for City and Jazz models. The new small car will be unveiled at the upcoming Thailand International Motor Expo 2010 starting November 30.

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