Honda confirms it won’t launch a sub-Brio entry level hatchback in India; wants to focus on premium cars
Honda won’t launch a sub-Brio Maruti Suzuki Alto rival car in India. The Japanese automaker has confirmed that it doesn’t want to add a new car as its entry level model. The company also says that Brio will continue as its entry level hatchback when the BS-VI emission norm comes into effect across the country in April 2020.
Honda Cars India CEO Mr. Yoichiro Ueno has confirmed the information and he also said that Honda never had such plan to roll out an entry level sub-Brio hatchback that will compete with Maruti Suzuki Alto and Renault Kwid. The brand wants to focus on the premium segment instead of mass market products. Also, Honda indicates that it won’t launch any car under Rs. 5 lakh price slab, when the market dynamics are changing in favour of premium products.
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However, a new more stylish and more upmarket Honda Brio is currently under development that is expected to be launched here in 2018. This hatchback will be sold in other global markets as well. Honda’s ambition with the premium products are nothing new. Also, the brand clearly has its own reasons to not enter the highly competitive entry level segment that Maruti Suzuki has been dominating for long time.
In the entry level segment Maruti Suzuki has several cars. On the other hand, Hyundai has garnered positive results with models like Santro and Eon. Renault too tasted success with the Kwid hatchback. Tata Motors tried its hand in the segment with the revolutionary Nano, but the car couldn’t fetch desired success for the homegrown brand.
Also read: 2016 Honda Brio Facelift Launched in India from Rs. 4.69 Lakh
Now, Honda’s philosophy is very clear behind the strategy of not launching a sub-Brio car here. It says that a car seen a too cheap doesn’t sell in Indian market. Also, the recent trend clearly reveals that domestic customers are showing interest towards premium products instead of basic cars meant for commuting in and around the city.
Source: Businessworld