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Honda study on to choose recreational car models for India

Honda Motor Company Limited of Japan is working towards introducing a recreational vehicle and a small car in India through its joint venture Honda Siel Cars India Limited.

''A feasibility study is currently underway to identify the particular models suited for India and a final decision on the same would be arrived at shortly,'' Nobuhiko Kawamoto, director and advisor, Honda Motor Company, said.

This is in addition to the three-wheelers that the company is planning to introduce in India over the next few years. The three-wheelers would be launched through its new wholly-owned subsidiary -- Honda Motorcycle and Scooter India Private Limited.

Regarding the new passenger car models, Kawamoto said, these are part of an ongoing exercise by Honda to identify new growth segments within the industry. ''Our first model in India -- the City -- has been a major success and we want to replicate the same success with other models.''

Honda is studying the existing models in its stables in the recreational vehicle and small car range for India. ''It can either be an existing model or an entirely new model built specially for India. The decision regarding this would be taken in consultation with HSCI,'' he added. Honda's existing small car models include the Life and the Logo.

The company has also approached the Foreign Investment Promotion Board seeking approval to import completely built units of its luxury sedan Accord and sell them here. ''The market for these luxury cars are very limited and we feel it does not make good business sense to produce the model here. So we intend to test-market the car first.''

HSCI had recently announced that the car would be priced at Rs 1.75 million and is targetted at the top-end of the mid-size segment of the Indian passenger car market.

Regarding plans to foray into the three-wheeler market, Kawamoto said though no concrete plans have been firmed up at present, the option is being mulled. ''It would not be a major problem for us to shift gears to three-wheelers. It will be simple for us and will also expand our presence in the Indian market.''

Besides, the company is also mulling divesting a part of its equity in the new subsidiary in favour of its existing joint venture company -- Hero Honda Motors Limited. However, the extent of equity to be shed and the time-frame for the same has not been finalised as yet.

HMC has already filed an application with the FIPB seeking approval to set up the subsidiary.

UNI

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