Honda Mobilio launch to fuel Indian MPV segment growth
Honda Mobilio is HCIL’s next big car. As its July launch nears, Honda isÂ revising manufacturingÂ strategy for an anticipated boost inÂ sales. In this regard, Honda’s Tapukara plant (Rajasthan) will work double shifts. Honda also has big hopes on its Jazz premium hatchback, pending resurrection by first quarter 2015.
Honda strongly believes that products like Mobilio and Jazz will help the company grow bigger by the end of 2014-15 fiscal. GrowingÂ sales of City sedan has put HCIL in the list of top five auto manufacturers in India. This year, Honda expects to climbÂ higher. In 2013-14 fiscal, HondaÂ sold 1.3 lakh vehicles, resulting inÂ 83% growth compared to the year before. Now, Honda targets 3 lakh sales units a year, by 2017.
Honda’s upcoming products are believed to make a statement just like City did in C segment compact sedan space. The key ingredientÂ that cultivates this hope on Honda is the diesel engine it mayÂ be offering in all of its future products. Honda Mobilio is based on Brio / Amaze platform andÂ will help Honda price the MPVÂ competitively against Maruti Ertiga. Â India is the second country to receive Mobilio after Indonesia, where the MPV took over Ertiga’s sales.
Sales of Honda Amaze took a hit recently due to growing popularity of Hyundai Xcent. In addition, high demand for new Honda City requiresÂ more volume output to plug waiting period, thereby feeding onÂ Amaze’s production. These two factors are believed to have contributed to declining Amaze’s sales.
Speaking on the same, in a mail to Rush Lane, Honda India writes, “Since April 2013, with the introduction of Honda Amaze and all New City, we have expanded our operating universe from 10% to more than 30% currently. Honda Mobilio will be yet another important launch for HCILâ€™s growth in India and help in expanding our operating universe further. We are hopeful that the Mobilio will be a game changer in its segment and evolve the MPV segment in India. Both our plants are fully operational right now and we are confident that we will be able to cater to the huge demand for all our vehicles.”