How Amaze could give Brio the fillip it needs badly

It is the most affordable car in Honda’s India portfolio but this obvious strength has not translated into big sales numbers. The Brio has been averaging barely 3,000 units a month since its launch in September 2011.

Ironically, it may just end up getting a lifeline from its more expensive sibling, Amaze, which recently made its debut at a price band of Rs 5-8 lakh. The Brio, in contrast, has seven variants costing between Rs 4 and 6 lakh.

Dieselisation phase

Logically, it should sell more because it is cheaper. Unlike the Amaze, though, the Brio comes only with a petrol option.

It was launched at the peak of the dieselisation phase in India and lost out largely to the Suzuki Swift as a result.

Officials at Honda Cars India believe the Brio’s strong premium image has ended up being slightly counterproductive.

Buyers of regular hatchbacks feel a bit overawed seeing the car and this may have affected its momentum in the market, they say.

Despite this, the Brio numbers have been steadily increasing every month despite the absence of a diesel variant.

Nearly 50 per cent of its customers opt for it as the second car in the family.

The balance is divided equally between first-time buyers and those upgrading from regular B-segment hatchbacks.

“There is a certain premium feel that goes hand-in-hand with the Brio which is equally true for the City. In contrast, the Amaze has a completely different positioning as a mass market brand,” says Jnaneswar Sen, Senior Vice-President (Sales & Marketing).

For a start, Honda has targeted two-thirds of the new sedan’s sales to be generated from Tier-2 and -3 centres, quite unlike the Brio which is more metro-centric.

The Amaze is meant for the regular middle-class buyer for whom family is priority. Most importantly, it has a diesel engine alternative which could translate into sales of over 6,000 units a month.

“We believe there will be a positive rub-off on the Brio as a result. Customers beyond the large metros will make a beeline for the Amaze but give the Brio a closer look too as it still has novelty value,” a top Honda official said.

As a result, there could be a gradual build-up for this premium hatchback.

The easier option for Honda is to dieselise the Brio. However, not doing this may be its strategy. Over the last few months, the demand for diesel cars has slowed down a bit.

No generous subsidy

Part of this is due to the fact that the fuel will no longer enjoy its generous Government subsidy.

Diesel prices will now be hiked by at least 50 paise each month, which will gradually bridge the differential vis-à-vis petrol.

The Amaze will now be the pivot of Honda’s strategy to reach out to a bigger customer base in India.

In the process, Honda expects the more affordable Brio to get the numbers in a market where petrol is slowly gaining lost ground.

> murali.gopalan@thehindu.co.in

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