Honda's new compact car in Rs 4.5 lakh

Honda Siel Cars India (HSCI) has initiated the homework to launch a compact car within three years priced at around Rs 4.5 lakh. This small car would be the first model from Honda that will be developed with India as a lead market. For this task, the company is making all arrangements in advance such as R&D team, plant and team size as well. Sources closed to the development confirmed that the new R&D team will start working on the project from June. The company aimed to keep the price of the small car as much as low. The R&D team will have to work hard to further indigenise and localise production of key components to keep the price of the new car at around Rs 4.5 lakh. The aimed price is around Rs 2.5 lakh lower than its upcoming  car Jazz. However, the car wouldn't be introduced before three years. It is learnt that the new small car would be manufactured from company's yet-to-be-completed plant at Tapukara in Rajasthan where work was stopped last year in view of the downturn. Sources disclosed that the R&D team would be having 25 members and it would be headed by a senior Honda official from Japan. Experienced persons from departments like manufacturing and purchase will also be included in the team.

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