Financial Daily from THE HINDU group of publications
Tuesday, May 24, 2005
Financial Daily from THE HINDU group of publications Tuesday, May 24, 2005 |
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Corporate
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Outlook Honda Civic may hit Indian roads next year Neha Kaushik
New Delhi , May 23 HONDA may be rolling out its international bestseller the Honda Civic, a premium mid-size sedan, as its next offering for the Indian market. Industry sources say that the Indian subsidiary, Honda Siel Cars India Ltd, has started preliminary work on the new car, which is likely to be launched in 2006. Sources add that Honda Sielis in the process of tying up with local vendors for manufacturing the car. The new car will compete with the Toyota Corolla and the Hyundai Elantra, and is likely to be priced in the Rs 9-10 lakh range. Honda Siel currently sells three models in the market, which include the City (its highest selling model), the Accord and the sports utility vehicle CR-V. The Civic, sources said, would occupy the gap between the City and the Accord in Honda Siel's portfolio. The company's sales have been on an upward drive since it began commercial production in December 1997. It had seen a 73 per cent jump in sales in the last fiscal, at 37,480 cars, compared with 21,703 cars in 2003-04. The Honda City accounted for the bulk of the growth in the year with a sales growth of 78 per cent, while the Accord and the CR-V increased their sales by 46 per cent and 37 per cent respectively. Honda Siel is targeting to sell upwards of 40,000 units this year. To meet growing demand, the company is currently working on a plan to increase capacity from 30,000 units per annum to 50,000 units before the end of 2005 through expansion of the existing plant and by bolstering its weld and paint equipment. Total investment for this expansion is about Rs 134 crore. Honda Siel is believed to have garnered a turnover of Rs 2,100-2,500 crore last fiscal.
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