Report – Honda India starts work on mini SUV and small car for 2017 launch

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A report on the Economic Times says that Honda Cars India has started development work on an entry-level small car and a compact SUV. The work has progressed from a consideration stage to a development stage, sources told the publication. Yoshiyuki Matsumoto, president and CEO of Honda Motor India, confirmed that the process to develop the small car has already started.

Honda Brio front
Both cars will be based on the same GSP platform underpinning the Brio.

The small car is codenamed ‘World A Entry Car’ as it could also be sold in markets like Indonesia and Africa. It will be positioned below the Brio, and is expected to cost below INR 4 lakhs. The compact SUV on the other hand will rival cars like the Ford EcoSport and the yet-to-be launched VW Taigun and Maruti XA-Alpha. Both cars will be based on the GSP platform which underpins the Brio, Amaze and Mobilio.

Part of the development of these cars will be carried out by Honda India’s R&D center to increase localization and thereby keep costs low. However, Japan will be the lead country to develop these cars.

The new cars are expected to hit the market in 2017. As both models play in voluminous segments, they are expected to significantly increase Honda India’s market share from the current 5.37 percent.

Honda World A Entry Competitors: Maruti Wagon R, Hyundai i10, Chevrolet Beat

Honda World A Entry Expected Price: Starting below INR 4 lakhs

Honda Mini SUV Competitors: Ford EcoSport, VW Taigun

Honda Mini SUV Expected Price: INR 6 – 9 lakhs, ex-Showroom

[Source – Economic Times]

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