Japanese car manufacturer Honda Siel Cars India is currently evaluating possibility of injecting a dosage of vitamin M into its second manufacturing facility in India to enhance its car manufacturing capacity and thus meet the increasing demand for the two hatchbacks.
The 1995 entrant is planning of upgrading its plant at Headquarters (Noida) to cash in on the increased demand that takes place during the festive season. Its second plant at Tarakpura, Rajasthan too has an installed capacity of 60,000 units but is currently manufacturing only a few critical components for export models of the cars. Many dealerships across the nation are reportedly asking buyers to wait for 4 to 6 months for the delivery of their Brio and Jazz hatchbacks. This further depicts that launching the competitively priced and capable Brio and reducing the selling price of their premium hatchback Jazz is working in favour of the auto maker.
Installed capacity of 1,00,000 units a year will in all probability fall short in case the manufacturer’s objective of selling as many as 40,000 units of Brio in a few months is met. Currently HSIC is planning to sell about 5400 cars a month. Also, Jazz is predicted to post a strong growth ever since it witnessed a price cut of a whopping INR 150000 in the second half of August. Hyundai’s i20 and Skoda Fabia being direct rivals of the Jazz are probably experiencing a serious threat from the Jazz ever since it started retailing at a reduced price of Rs. 5.5 lakhs (Ex showroom, Delhi). Even the upper C segment sedan from the manufacturer, the City saw a reduction in price by a considerable amount of Rs. 66000. This made City crawl back to its numero uno status by selling as many as 3720 units in the month of September. City sits on top of the sales chart of its segment without having any diesel variant. Before the Brio came, Honda was utilising only 60 per cent of its manufacturing capacity by producing cars like the Jazz, City, Civic and Accord. The company has also stated that it has future plans of a lower C segment sedan spawned out of the Brio. The company exports its cars to Nepal and also is looking forward to export to right hand drive markets like Sri Lanka and Bhutan.
If all this was not enough, company’s future plans of launching diesel variants of its cars in India has further consolidated the need of optimising its manufacturing capacities in India. The Japan based manufacturer is already developing diesel powerplants and plans to introduce them here subsequently.