With the closure of the production plant in Greater Noida and concentrating it entirely on the plant in Rajasthan’s Tapukara, Honda Cars India is also finishing the way for its Civic and CR-V with the fifth-generation City now the most popular product premium. offered in India. The automaker, however, is betting on new technologies and electric vehicles to make a mark on the Indian market for times to come.
Speaking to The Hindu Business Line, Rajesh Goel of Honda Cars India confirmed the decision to shut down production of the Civic and CR-V. “The Tapukara plant is designed to be suitable for manufacturing midsize cars and therefore the Civic and CR-V sizes cannot be accommodated,” said HCIL’s senior vice president and director of marketing and sales. “And, if we invest in existing models, the price dynamics may not match customer expectations, especially as the market has declined over the last year.”
Both the Civic and CR-V have been slow for Honda in India. While Goel says the company is committed to providing service and parts to existing customers who own either car, it’s also true that the sales figures may not have justified a continuation either. Instead, Honda is looking for newer and better technology.
In a press release issued to confirm that all production operations will now be only at its facilities in Rajasthan, Honda presented a bold outlook for times to come. “India is an extremely important market in Honda’s global strategy and HCIL is committed to bringing its latest and most advanced technology models including electrified vehicles into the future,” said Gaku Nakanishi, President and CEO of Honda Cars India. “HCIL continues to believe in the resilience of the Indian economy and expects a faster recovery from the market.”
While there is no information on ‘when’ Honda’s EVs could break through here, the ‘if’ question may at least have been answered.
India is steadily moving towards electric mobility and while two- and three-wheelers are expected to lead and light the way forward, there is also notable movement in the passenger vehicle segment. Tata Motors has done reasonably well with its Nexon EV, while Mercedes launched the EQC a few months ago. The likes of Audi, Jaguar and Volvo have confirmed that their repsective electric vehicles will hit the shores of India next year, while Mahindra’s e-KUV is likely to make a bang with its comparatively affordable price.
Where does all this leave Honda then?
Globally, the Honda e, the company’s first all-electric product, has been well received. It’s sold in select European markets, and while rivals are looking to outshine Tesla, the e sticks to its strengths of being an urban transport option. “We question whether larger vehicles are appropriate for urban areas and believe that smaller vehicles are a better option for cities,” Tomofumi Ichinose, Honda e chief engineer, had previously said.
However, it remains to be seen if Honda e has been calling India or if it is another product.
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