Lovers of the Honda Jazz have cause for cheer. The Japanese automaker is bringing the model back to India next year with petrol/diesel options.
“Besides Jazz, we are also planning a 7-seater MPV, which may be launched next year. It is still in the development stage and may come in both diesel and petrol,” said Jnaneswar Sen, Honda Cars India’s Senior Vice-President (Marketing and Sales). The company is investing in a new car assembly line, diesel engine plant and a forging plant at its facility in Tapukara, Rajasthan. “The diesel engine plant is ready and the other two projects will be ready by next year," he added.
Sen was speaking on the sidelines of the annual convention of the Society of Indian Automobile Manufacturers.
With a crumbling rupee, will Honda go in for a price hike? “The market is very tough and competitive with pressure on bottomline. We are studying the impact and have so far not arrived at any decision,” he said.
“Our products like Brio and Amaze have over 90 per cent local content. In the short-term, there is no significant impact of rupee depreciation for us,” he added.
VW price hike
Volkswagen India is considering hiking prices of its products and could take a decision by next week.
VW Group Sales India Managing Director (Volkswagen Passenger Cars) Arvind Saxena said the rupee depreciation was hitting margins. “We are currently working on the quantum of the price increase,” he added.
According to Saxena, the festival season was not likely to see a big uptick for the auto industry considering the current economic conditions. Asked if a Government stimulus would help, he said it did the trick during the 2008 crisis.
Ford India exports
Ford Motor Company announced an accelerated export strategy in India to adapt to the country’s changing market conditions and strong global demand for small cars and sport utility vehicles.
Ford India will focus on exports to more than 50 global markets. Over the next four to five years, due to the flexibility of its One Ford plan, the company will have the ability to export a substantial portion of its total volumes.
“As we undergo our biggest industrial expansion in half-a-century in Asia Pacific, we remain committed to the One Ford goal of delivering profitable growth for all,” said Dave Schoch, Ford group Vice-President and President of Asia Pacific. The company expects that by 2020, demand for small vehicles will account for more than 60 per cent of the automobile market globally. In India alone, Ford expects industry demand for B-segment vehicles to double, and demand for sport utility and multi activity vehicles to triple, between 2012 and 2017.