Considering current upheavals in the Indian auto market and rising competitive pressure, the launch of Honda Amaze is expected to set the cat among pigeons specially where Maruti Suzuki Swift DZire is concerned. Maruti Suzuki stock while moving, isn’t moving fast enough. Ever since launch of Honda Amaze on April 11, 2013, enquiries and bookings have been galore Honda.
The vehicle while expected to take away some share from MSIL where Amaze competes with the Maruti Suzuki Swift DZire won’t cause any immediate damage. Honda has limitations in terms of production capacity. They are capable of capacity constraints. They are capable of manufacturing about 4500 Honda Amaze compact sedan units, which are based on the Brio. This is expected to minimize impact. Maruti DZire on the other hand can sell about 20,000 units a month as seen in in March 2013.
Honda Amaze diesel variants are slated to be 10% more fuel efficient as compared to DZire, and power and price factors are also more favorable at the entry level. Besides fearing competition from Amaze, MSIL’s Swift will soon have to compete with the M&M Verito Vibe, a sub 4 metre hatchback based on the Verito sedan.It is scheduled for launch in May 2013.
To ensure sustained growth and to deal with competition from all fronts, MSIL will be introducing new produces, which is now much awaited. They have begun with the new limited edition DZire, while a new MPV and SUV are also being planned. Capacities are being augmented and this will play a major role in reducing waiting periods for both the Swift and DZire models which is currently at between 4 to 5 months to be brought down to 2 months and this is expected to go a long way to enhance demand.
Unfortunately, Honda does not have such options at present, and production will not be augmented anytime soon. However, despite it’s limited production run, and now believably limited period introductory price, the Honda Amazes many, and will take on the likes of Tata Indigo, Toyota Etios, Volkswagen Vento, Nissan Sunny, Mahindra Verito, Chevrolet Sail, Tata Manza, Ford Classic, and most likely to soon to be here Verito Vibe. The segment is competitive and does confuse buyers an awful lot. While short term scope is limited, in the next few months, most compact sedan manufacturers will need to spruce their game.