Honda is believed to be contemplating another plant in India primarily to be able to offer a small car in the Rs.3-4 lakh price range. It is speculated that the plant will be in Sanand, Gujarat. Honda is targeting a huge share in the A-segment of the Indian market as it foresees huge growth in car sales there.
Honda’s single car plant in Greater Noida makes the Brio, Amaze, City and assembles the CRV and the Accord. The carmaker is currently believed to be focused on meeting the deadlines at the Tapukara plant in Rajasthan especially after huge demands of the diesel variant of the Amaze. So it is likely to come up with a new plant, only after utilising both the current plant’s capacities, in order to be able to bring out a new car.
The Indian car market saw a good increase in sales of models in the mini-car segment this year in comparison to last year. Honda still lacks a model in this segment and the cheapest car Honda has to offer is the Honda Brio which is just above Rs four lakhs.
Honda’s key strategy thus seems to be targeting the mini-car segment by getting a competitive product and thus increasing its overall sales volumes too. The new car will compete with the Maruti Suzuki Alto and Hyundai Eon as well as the Tata Nano.