Honda new small car to be unveiled in the next festive season

Honda Seil Cars India (HSCI) is planning to develop a new plant to quicken the production of its vehicles. The company wishes to set up a new plant and also wants to launch a small car before next years festive season.

HSCI, is the third largest Japanese automobile company in India, after the likes Toyota Kirloskar and Suzuki, is getting ready to launch its small car in the 27th Thailand International Motor Expo 2010 which will commence on 30th of November. The small car was unveiled as the concept car at the Auto Expo in New Delhi this year in January.

As per the sources, the small car will be priced below Rs 500,000 lacs and will come in two models. Honda Siel Cars India will promote the new small car on its excellent fuel efficiency. The sources also reveal that HSCI is having the capability of expanding the production capacity of its facility in Noida from 60,000 units to 100,000 units every year.

Tatsuya Natsume, the marketing director of HSCI, said that, the company will be left with limited capacity to expand in its Noida plant after increasing it to 100,000 cars every year. As per him, the company will take the decision on extending the capacity of the manufacturing facility or setting up an all new plant. But this will happen after the company will review the response on the new small car. As per the company, this segment is a volume driven segment and if it wish to enhance in quantity of its vehicles the company has to come up with a new facility. The company at present has 121 dealerships which it expects to increase to 150 by the year end.

The company with the small car will enter the hatchback segment in India. This segment is explored time and again with the popularity among the Indian customers. There are noted names in the auto market which are exploring this segment. Maruti Swift is said to be the perfect example of the premium compact car in the country. The sales of the hatchback model is around 10,000 to 20,000 cars every month. The company will also face competition with its contemporaries Hyundai i20, Chevrolet Spark and Volkswagen Polo.

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