On the sidelines of unveiling the concept version of its first small car at the Auto Expo, India's leading premium carmaker, Honda Siel Cars India also shared its launch strategy for the benfit of the media. The export model would begin its outward journey first by being exported to neighbouring countries like Nepal, Sri Lanka, Bhutan, Bangladesh, etc. The reason fro doing so is that the small car has ben created keeping the local Indian sub continent condition sin mind and hecne its logical to first try out those markets which conform to those conditions. Slated to hit the domestic market by 2011 it will be priced below Rs. 5 lakh and will have nearly 80 per cent local content. The model, which had been entirely developed in Japan, will be manufactured at Honda's Greater Noida facility from next year. Honda has another plant in Rajasthan which produces body panels and engine components. This could well be home to the small car should there be a need for added capacity, as revealed by a senior representative of Honda Siel. Designed specifically for the Indian market, it will also be introduced in Thailand at a later point of time.
Speaking to the reporters at the Auto Expo recently, Jnaneshwar Sen, vice-president (marketing), said, "Though it's still on the drawing board, the company is eager to export it to the neighbouring countries like Sri Lanka, Bhutan, Nepal, Bangladesh, etc." He also stated, "The small car's launch is very much on schedule and the product is under development and should hit the roads in the next 2-3 years. "The first phase of our second plant project at Tapukara in Rajasthan is fully operational. It is only the second phase of the project, which is the Assembly unit, which has been postponed. Once the company achieves 100 per cent capacity utilisation at the Noida plant we will look at the second phase of the Rajasthan project", he said adding right now, the capacity utilisation ratio at the Noida plant is at 60 per cent and with Jazz it is expected to go up in the near future.
Elaborating further on the small car, Sen said that the company has studied the needs of a small car owner in the country for last two years before arriving at the arodynamic design shown at the Auto Expo. So much so, that the company has analysed how a typical Indian saree-clad woman gets in and out of a small car. For this, ladies draped in sarees were flown from India to Honda's global design centre in Japan. Likewise, the company has also started studying Indian customers' behaviour and usage patterns — weekend trend, shopping habits — to design stylish cars with modern looks and pack them with ergonomics features, as told by Sen to reporters.
In order to keep costs low, Honda would also focus on localisation which means India could end up being a key sourcing base for supply of parts to other countries where the car will be launched. Indications are that Brazil, Russia and parts of Europe could be on the radar.
Honda Siel Cars India Director (Marketing) Tatsuya Natsume told reporters during the 10th Auto Expo in New Delhi, ""Our new small car, to be launched in 2011, will have a rate of around 80 per cent in localisation of components and we expect the small car to be as popular as the City and are all geared up to meet the demand once it is launched. We will also increase the use of local components in our other models as well," he added.
Media reports suggest that the company is looking at buying steel and electrical components from Indian suppliers for the car to be cost competitive, as revealed by Honda Motor Co executive vice-president and representative director Koichi Kondo while unveiling the concept of new small car. It is to be mentioned that Honda currently buys steel from Tata Steel and now they are in talks with other leading Indian steel makers for possible supplies.
"Local procurement of components is needed more now than before to make our small car cost competitive. We are looking to buy steel from Indian suppliers and also other components," Kondo said. He added, "It (the small car) should be less than Rs. 5 lakh to be competitive in the market," he said.
"Electrical components are something that we are still relying on imports for. We are talking to our Indian suppliers if they can make it for us," Honda Siel Cars India (HSCI) President and CEO Masahiro Takedagawa said.
Speaking to the reporters at the Auto Expo recently, Jnaneshwar Sen, vice-president (marketing), said, "Though it's still on the drawing board, the company is eager to export it to the neighbouring countries like Sri Lanka, Bhutan, Nepal, Bangladesh, etc." He also stated, "The small car's launch is very much on schedule and the product is under development and should hit the roads in the next 2-3 years. "The first phase of our second plant project at Tapukara in Rajasthan is fully operational. It is only the second phase of the project, which is the Assembly unit, which has been postponed. Once the company achieves 100 per cent capacity utilisation at the Noida plant we will look at the second phase of the Rajasthan project", he said adding right now, the capacity utilisation ratio at the Noida plant is at 60 per cent and with Jazz it is expected to go up in the near future.
Elaborating further on the small car, Sen said that the company has studied the needs of a small car owner in the country for last two years before arriving at the arodynamic design shown at the Auto Expo. So much so, that the company has analysed how a typical Indian saree-clad woman gets in and out of a small car. For this, ladies draped in sarees were flown from India to Honda's global design centre in Japan. Likewise, the company has also started studying Indian customers' behaviour and usage patterns — weekend trend, shopping habits — to design stylish cars with modern looks and pack them with ergonomics features, as told by Sen to reporters.
In order to keep costs low, Honda would also focus on localisation which means India could end up being a key sourcing base for supply of parts to other countries where the car will be launched. Indications are that Brazil, Russia and parts of Europe could be on the radar.
Honda Siel Cars India Director (Marketing) Tatsuya Natsume told reporters during the 10th Auto Expo in New Delhi, ""Our new small car, to be launched in 2011, will have a rate of around 80 per cent in localisation of components and we expect the small car to be as popular as the City and are all geared up to meet the demand once it is launched. We will also increase the use of local components in our other models as well," he added.
Media reports suggest that the company is looking at buying steel and electrical components from Indian suppliers for the car to be cost competitive, as revealed by Honda Motor Co executive vice-president and representative director Koichi Kondo while unveiling the concept of new small car. It is to be mentioned that Honda currently buys steel from Tata Steel and now they are in talks with other leading Indian steel makers for possible supplies.
"Local procurement of components is needed more now than before to make our small car cost competitive. We are looking to buy steel from Indian suppliers and also other components," Kondo said. He added, "It (the small car) should be less than Rs. 5 lakh to be competitive in the market," he said.
"Electrical components are something that we are still relying on imports for. We are talking to our Indian suppliers if they can make it for us," Honda Siel Cars India (HSCI) President and CEO Masahiro Takedagawa said.
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