Honda working on a new hatchback to compete with Maruti Suzuki Alto 800

The performance of the Amaze compact sedan has completely changed the image of Honda in the Indian car market. Sometime ago, the Japanese car maker was labelled as a brand that does not produce vehicles for the masses. However, as a part of the brand redevelopment program, the firm worked on the i-DTEC technology, which has turned out to be a huge success. The Amaze has managed to eat in on the sales of the Maruti Suzuki Swift DZire, which indicates the kind of impact it has made in India. Now, banking on the success of this model, the company has planned aggressively for the Indian car market in the coming years. According to sources, the firm is going to launch the diesel version of Honda City in the year 2014. Now, fresh reports have surfaced regarding the production of an entry-level hatchback, which is likely to take place at a new plant.

Although nothing has been confirmed by the auto maker, rumours and speculations indicate that Honda is planning to build on the good work done in the recent past. Reports claim that top officials from the firm held a meeting to discuss and contemplate the way forward in context of the Indian car market. After rivalling Maruti Suzuki directly in the compact sedan segment, the Japanese auto maker wants to compete with an entry-level hatchback. To facilitate the same, the company, sources suggest, has started a comprehensive research on the new production facility and is considering a number of locations.

Industry experts feel that Honda has the potential to perform well in the entry-level hatchback segment despite strong competition. At present, this segment is being led by the likes of Maruti Suzuki Alto 800 and Hyundai Eon, which have done exceptionally well. The Japanese auto maker, currently, sells the Brio hatchback in the Indian market, a car that has got excellent reviews from experts. The hatchback segment has tremendous potential in India, which means that Honda can do wonders regardless of the number of competitors it has in the country.

Sources suggest that even the company is looking forward in the same direction and increase its market share in India. An official from Honda, close to this campaign, said, "We have to run fast to get volumes in India because we are very small today. Honda feels that to maintain and grow its global market share by 2020, increased capacity will be needed in emerging markets like India, from where the growth will actually come, since developed markets are near saturation. Talks are on for various products, but nothing has been frozen. But only when we are sure of utilising the new capacity at Tapukara, can we ask the headquarters for more investment."

Source;

http://www.cartrade.com/car-bike-news/honda-working-on-a-new-hatchback-to-compete-with-maruti-suzuki-alto-800-121924.html