| Honda’s first small car for India, the Jazz, will | | | | price its products aggressively to catch big volumes. |
| make its first public appearance at the Tokyo Motor | | | | The Jazz is likely to sport a price tag of Rs 4.6-5.6 |
| show in October this year. Expected to be launched | | | | lakh to draw big volumes in the segment, given the |
| in a finely tuned form in India to take advantage of | | | | competition from Getz and Swift. While Jazz will hit |
| the taxation structure, the product is most likely to | | | | the Indian roads in 2009, another small car from the |
| come strapped with a diesel engine. | | | | Honda stable, which is designed for the Indian |
| The new Honda Jazz is built to take on Swift and | | | | market, will be launched in the country from that |
| Getz. Masahiro Takedagawa, chairman and CEO of | | | | time on. This model would be launched one level |
| Honda Siel Cars India, has already implied that the | | | | lower in the B-segment and would rival with the likes |
| company’s small cars would be positioned to fit | | | | of Hyundai Santro, Tata Indica and Maruti Wagon R. |
| into the lower excise duty bracket. Small cars with a | | | | The company’s second Indian car plant, which is |
| certain specification of engine capacity and length | | | | coming up at Takapura in Rajasthan, would |
| attract lower tax of 16 percent as against 24 | | | | manufacture the next generation Jazz. The initial |
| percent for bigger cars, as per the excise duty | | | | capacity of plant would reach 60,000 vehicles which |
| structure. The Jazz might come with a 1.5-litre diesel | | | | will be more than tripled to 2 lakh units over time. |
| engine in order to draw excise benefits. Honda is | | | | Moreover, Honda’s second small car for India is |
| traditionally known for pricing its product on the | | | | also expected to be manufactured in the Takapura |
| higher side. But auto analysts say that the Japanese | | | | plant after its capacity is reinvented. |
| manufacturer will have to change its stand as it | | | | About Honda |
| treads into the compact segment. | | | | Honda is well known for its diverse line up of quality |
| PriceWaterhouse partner Abdul Majeed said that the | | | | automobiles and car parts under Honda such as |
| B and the B+ segment cars do not give high margin. | | | | Honda S2000 parts and Acura name plates, and for |
| But according to him, to be able to make money in | | | | its motorcycles, ATVs, power products, marine |
| these segments, any auto maker would have to | | | | engines, and personal watercraft. |