The Hindu Business Line : Launch of Jazz to be advanced to mid-2009

Phase I launch: The Rajasthan Chief Minister, Ms Vasundhara Raje, and the President & CEO Honda Motor Company, Japan, Mr Takeo Fukui, at the inauguration of phase I of the second plant in Tapukara village in Bhiwadi, on Friday. —

Priyanka Vyas

Tapukara, Sept. 26 The launch of Jazz, the premium hatchback car from Honda Siel, is to be advanced by six months to the middle of next year, the President and Chief Executive Officer, Honda Siel Cars India, Mr Masahiro Takedagawa, said on Friday.

“Diwali is the most important season. So we are advancing the launch of our compact car,” said Mr Takedagawa, at the inauguration of its second plant at Tapukara, Rajasthan. The decision to advance the launch of Jazz so that it is in the market before Diwali next year, has also been driven by the response that the car received at the Auto Expo and the momentum that the compact car segment is gaining from the excise duty benefit of 12 per cent.

Noida facility

In contrast to Honda’s earlier plans of producing Jazz from its Rajasthan facility, the company will now be rolling out its compact hatchback from its Greater Noida facility initially. The Jazz would have 72 per cent localisation level.

“Considering that this is an entirely new facility and it will take time to ramp up volumes, we have decided to begin the initial production from our existing facility which already makes Honda City, Civic and Accord,” explained Mr Takedawaga.

Currently, the Greater Noida plant has a capacity to produce one lakh cars. Mr Takedagawa said that 60 per cent of the total production capacity of its City model would be allotted for Jazz and the remaining 40 per cent for its sedan. The remaining capacity of about 20,000 units would be for Civic and about 10,000 units for Accord.

Honda’s new facility in Rajasthan, which was inaugurated on Friday, is now ready with a press facility and production of power train components. The company said that with Asean Free Trade Agreement set to be operational by next year, it would export engine parts to nearby countries in South and South East Asia.

Honda also plans to set up a research and development division for components here. However, Mr Takedagawa denied any plans of setting up a design or a development centre in the country like some of the other global car companies.

The new plant at Rajasthan has been set up at an investment of Rs 1,000 crore with an initial capacity of 60,000 units.

Mr Takedawaga indicated that the company would take about two years to utilise its full capacity at the new plant. Honda is also planning another small car which it said could be first rolled out from its Rajasthan facility. The company, however, did not reveal any timeline for launch of the second model.

Mr Takeo Fukui, President & CEO, Honda Motors Co, in his address said, “For Honda, India is a very important market and our faith in India’s growth story stays intact. Our investment plans in India are on track and Honda is confident of catering to the increasing demand of our Indian customers through this new plant.”

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