Anthony Fontanelle is a 35-year-old automotive buff who grew up in the Windy City. He does freelance work for an automotive magazine when he is not busy customizing cars in his shop.
Honda’s subsidiary in India, Honda Siel Cars India (HSCI) with plant located at the Greater Noida near Delhi is considering manufacturing the CR-V.
Currently, the CR-V Sport Utility Vehicle (SUV) is imported from Japan and distributed in the Indian market. According to Masahiro Takedagawa, President and CEO of HSCI in an interview with DNA Money said, "We are studying the possibilities of producing the CR-V locally, which will help us become a far more active player in the growing SUV market."
Around 300 units of CR-V are sold in India every month and priced at Rs 20 lakh. Nearly half of this figure is comprised of import duty components. And just in case Honda would finally decide to manufacture the CR-V locally, price would likely go down to Rs 12-14 lakh which will surely entice customers.
In the top-end SUV segment, CR-V is the lead player along with Mitsubishi Pajero, Ford Endeavour, Suzuki Vitara and other models of which mostly are directly imported.
The advantage of local production is that more CR-Vs will be produce and aside from that HSCI also believes that there is a potential to increase market share once the vehicle built a strong brand image in the market.
Mr. Takedagawa also said that the company is hoping to produce around 68,000 units comprising of Civic, City, and Accord. HSCI has announced that it intends to manufacture over 150,000 cars by 2010 which is the same year when annual car production in the country is expected to reach 2.5 million units. Mr. Takedagawa also said that the company is really serious in its desire to increase its overall market share in India. The company is hoping to close this fiscal with the production of around 68,000 units consisting of the Civic, Accord, and City.
In addition, Mr. Takedagawa mentioned that the company will introduce a new hatchback which it plans of introducing in a couple of years and will play an important role in the sales growth that Honda the producer of high quality Acura CL catalytic converter is expecting in the future. The car is said to be a derivative of the Jazz and is scheduled to be produced at the second plant in Rajasthan.
This new plant is different from the one at Greater Noida where body panels are imported but this will not be the case with the plant in Rajasthan where a stamping facility is being installed specifically for this purpose.
There are also plans of producing locally important engine parts to keep costs low and at the same time to increase production volumes.
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