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Honda Siel

Honda Siel Cars revives Tapukara project

Honda Siel Cars India (HSCI) is planning to invest Rs.3000 million to set up its second manufacturing plant in Tapukara in Rajasthan. The new unit will produce engine & transmission components (powertrain) which will help to cut cost of critical car components, which are currently imported from Indonesia and Thailand. The unit is likely to become operational in early 2011. The company is also considering India as low cost manufacturing base to export critical components for their global operations.

Honda plans new variant of Jazz

Honda Siel Cars India is likely to launch a variant of its premium hatchback Jazz. The car is not doing well according to the company expectations. It sales has been dropping from 571 in March 2010 to 338 units in April 2010 and 205 units in May 2010. It is facing tough competition from Hyundai i20 (price starts from 4.51 lakh), Volkswagen Polo( Rs.4.3 lakh onwards) and Skoda Fabia (Rs.5.02 lakh onwards) who are present in the segment. The price of Honda Jazz price starts at Rs.7.11 lakh which puts off many prospective customers who do not see value and not willing to pay the premium for the Honda brand. So a variant with new alloy wheels , a fresh ‘Rallye red' colour, new blue-black interiors, front grill, and tailgate spoiler is on the way but the desired price correction is tough with yen appreciating against the rupee.

Honda unlikely to start production in Rajasthan now



Honda Siel Motors has deferred the phase II expansion project by two years. It is unlikely the company will start production at Tapukara in Rajasthan plant now. Last year, its Greater Noida plant capacity has been upgraded to 100000 cars per annum but it sold only 60000 cars, so it will rush to complete the Rajasthan plant. Even Jazz, the smaller car with 1.2 liter i-VTEC engine will also be made in Greater Noida plant. It expects 2009 to be a good year with new City model
 
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