Honda executives at the Brio's India launch, New Delhi, Sept. 27.
Honda Launches Brio Hatchback in India
By NIKHIL GULATI
NEW DELHI -- Honda Motor Co. Tuesday introduced its second hatchback and cheapest car yet in India, as the auto maker seeks to challenge the dominance of Maruti Suzuki India Ltd. and Hyundai Motor Co. in the country's most popular vehicle segment.
Priced between 395,000 rupees ($8000) and 510,000 rupees at showrooms in New Delhi, the Brio--powered by a 1.2-liter gasoline engine--would compete with Maruti's Swift and Ritz, Hyundai's i10 as well as Toyota Motor Corp.'s Etios Liva and Ford Motor Co.'s Figo.
We have been able to launch the Brio at a competitive price due to our efforts to control costs, maximize production efficiencies and minimize impact of currency fluctuations, and we have achieved this through higher localization," Takashi Nagai, president and chief executive at Honda Siel Cars India Ltd., told a press conference. Honda Siel Cars is 99.9% owned by Honda, and 0.1% by India's Siel Ltd.
Honda Siel sources 80% of the Brio's parts locally, which it aims to increase to 90%, Mr. Nagai said, adding that the company has no immediate plan to introduce a diesel variant of the car.
"Our customers have mostly been in bigger cities so far. With the Brio, we expect to reach out to customers in smaller cities as well," he said.The Brio will add to Honda's Jazz hatchback, the City, Civic and Accord sedans and the CR-V sport-utility vehicle in India.
Small cars comprise about 70% of all passenger vehicles sold in India, sought after because of their cheaper price tags and higher fuel efficiency. The last couple of years have seen a rush of new hatchback models in the country introduced by Toyota, Ford, Volkswagen AG and Nissan Motor Co.
The onset of the Indian festive season makes it an opportune time for Honda to introduce its new model. Rising fuel prices and interest rates have crimped demand for autos in India, but companies expect sales to recover during the festival months of October to December, which are considered auspicious by many to make new purchases.
Honda recently also cut prices of Jazz by up to 23% to bolster demand for the premium hatchback.
Mr. Nagai said the company will consider exporting the Brio to neighboring countries such as Bangladesh, Nepal and Bhutan in the near future. Honda has already started exporting Brio's parts to Thailand, where it already ships parts of City and Jazz models, he added.
Write to Nikhil Gulati at nikhil.gulati@dowjones.com
For a test drive/review of the Brio, click on:
http://www.team-bhp.com/forum/official-new-car-reviews/107427-honda-brio-test-drive-review.html
article source: Wall Street Journal