Honda is planning to launch an SUV model in India next year
New Delhi:
Japanese automaker Honda, which has a strong presence in the sedan segment, is now focusing on the fast-growing SUV market in the country with plans to launch a sports utility vehicle (SUV) model next year.
The company is currently in the process of developing this model. “We are recognizing the market movement (towards SUVs). This is a global phenomenon so we are definitely looking into it. Globally, we have a presence in this segment and we are looking at India’s What is best for. We are planning an SUV model and plan to introduce it next year,” said Takuya Tsumura, President and CEO, Honda Cars India.
Last year the automaker had confirmed that it is in the process of developing an India-specific SUV.
Asked if the company would consider launching more than one SUV model in the market, he said, “We can’t reveal it right now, but of course we always think about future models… Seeing what needs to be done.”
Mr Tsumura said that while the company is focusing on expanding the SUV range, it will continue to enhance its sedan lineup as well.
“We have a long history with Citi. It has been around for 25 years and a total of 8.5 lakh units have been sold. I believe the Citi brand is very strong and we are getting numbers. That City and Amaze are strong brands. And we want to continue with them. We will launch SUVs and continue to add to the lineup,” Mr. Tsumura said.
The company has a strong presence in the sedan segment with Amaze and City and the market is likely to grow with original equipment manufacturers bringing new models in the vertical, he added.
“Perhaps there were no new launches happening in the vertical so consumers were moving to SUVs,” said Mr. Tsumura. He said that the company is going through a process of transformation and now wants to expand its business in the country.
“We needed to make a very strong company constitution first… We have merged the factory and we have tried to make our business constitution strong, otherwise we cannot go into the future. We have already done that , and now we want to use our assets to grow our business,” said Tsumura, who took over as the company’s president and CEO on April 1.
In December 2020, Honda announced the closure of manufacturing operations at its Greater Noida facility in Uttar Pradesh, thus consolidating its production activities at its second plant in Tapukara, Rajasthan.
Mr Tsumura said the company is still facing production issues due to chip shortages and other supply chain disruptions, but it is also focusing on making India a major base for exports.
He said the automaker had shipped around 20,000 units in the last fiscal, and is aiming to log a similar number in this financial year as well.
“We are still struggling with partial shortage issues… because of the COVID in China and the Russia-Ukraine situation… so the situation is not very clear… we can have visibility on the first and second tier suppliers But under that there are layers and those that can be affected,” said Mr. Tsumura.
On the sales outlook for the current fiscal, he said the company aims to grow the domestic market and exports as well.