Honda Cars India, the wholly owned subsidiary of the Japanese automobile manufacturer Honda has announced its plans to develop and manufacture a compact car model specifically for the Indian car market.
This will be a first for the Japanese automaker which has so far modified its existing car products for the Indian market but never designed and developed an India specific model. Commenting on the announcement, Mr. Takanobu Ito President and Chief Executive Honda stated that the step is in line with the carmaker’s increased focus on the Asian car market. He added that the auto manufacturer expects 50 percent of its global production to be accounted for by India and Indonesia.
The decision to develop an India specific compact car is attributable to the high volume demand for compact cars in India. Being a predominantly small car market has led auto manufacturers, even luxury automakers to target the small and compact car segment in India to boost sales.
The Japanese carmaker has recently in April 2013 launched its first diesel powered car model Amaze which sports a new diesel engine developed by Honda specifically for Indian requirements. Additionally, the automaker is planning to introduce a diesel engine version for its other existing car models.
