Honda Jazz production halted to make way for Brio Amaze in India
Honda Cars India has stopped the production of their premium hatchback Jazz. The news comes as a surprise because Jazz was in demand and usually came with a waiting period. Honda India is betting big on the new Brio Amaze diesel sedan which is scheduled to launch in April 2013.
Honda Jazz was launched in India back in June 2009 with a price tag of INR 7+ lakhs, ex-showroom, New Delhi. Later in Aug 2011, thanks to increased amount of localization, Honda India was able to reduce the price of Jazz by INR 1.6 lakhs, taking the price of Jazz to as low as INR 5.50 lakhs. This gave a much needed push in sales and Honda started to receive more and more bookings, which led to increase in waiting periods.
But now, Honda India has decided to halt the production of the Jazz, reports AutoCar India. It is believed that Honda was losing money on every Jazz sold since the prices were slashed in 2011. This can also be the reason why the Jazz managed to deliver average monthly sales of just 400 units, even when the demand was much higher. Honda India will deliver Jazz to customers who have already booked it, while their dealers have been ordered not to take any new orders of the Jazz. They will be launching the new Jazz after unveiling it at the 2014 Delhi Auto Expo. 2014 Honda Jazz will be offered with a choice of 1.5L diesel and 1.2L petrol. It might also be offered in a 1.5L hot hatch option.
The other reason Honda India is halting the production of Jazz can be due to the nearing launch of new Brio Amaze. Honda has plans to grow in India around the new Brio Amaze sedan, which will be launched in April 2013 with a 1.5L diesel engine, making it the first Honda car in India to be powered by a diesel engine. Based on the Brio hatchback, Amaze sedan will compete with the Maruti Suzuki Swift DZire.