Honda Won't Offer Low-Cost Minicar in India to Compete With Tata, Renault-Nissan
By Scott Doggett November 11, 2009
Dispelling rumors to the contrary, Honda Motor Co. won't be making a low-cost and presumably fuel-efficient minicar in India to compete with products released by Tata Motors Ltd. and the alliance of Renault SA and Nissan Motor Co.
Instead, Japan's second-biggest carmaker is developing a small car that will cost less than its existing Jazz hatchback model, CEO Takanobu Ito told a news conference today.
The starting price of Jazz is 698,000 rupees (about $15,000) at showrooms in New Delhi.
Ito said the new car will be targeted at countries in Asia, with India as a key market.
"We would like to offer to as many customers as possible, a product at their price expectation level," he said, but didn't give any time frame for launching the new car or a likely price range.
Tata Motors, which controls Jaguar and Land Rover luxury brands, currently sells the Nano minicar (pictured), the world's cheapest car, with starting prices of about 115,000 rupees (roughly $2,500) at showrooms in New Delhi.
The popularity of the car amid rising demand for fuel-efficient, affordable vehicles has prompted other automakers such as Renualt-Nissan, General Motors Co. and Hyundai Motor Co. to announce plans to develop their own low-cost cars.
Renault-Nissan Chief Executive Carlos Ghosn said Tuesday that a new minicar, to be designed and manufactured by Indian motorcycle maker Bajaj Auto Ltd. and distributed by Renault-Nissan, will be the cheapest car in India when introduced in 2012.
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