Honda takes CKD route for CR-V in India, drops prices

Now Honda Cars India wants to boost sales and has re-launched the SUV, cutting prices by Rs 2.5 lakh on its new 2.4-litre AT petrol model, down from Rs 24.9 lakh to Rs 22.4 lakh for the fourth-generation model. Similarly, the new 2.0 SOHC VTEC model fitted with a six-speed manual transmission will now cost Rs 19.95 lakh, down Rs 3 lakh from the earlier price tag of Rs 22.65 lakh (all prices ex-showroom, New Delhi). Honda India Cars has also offered the audio visual navigation (AVN) option in the 2.4 DOHC VTEC automatic transmission trim. This is a first for the CR-V and it will come with a four-wheel-drive option. The cut in prices of the new CR-V has been facilitated by bringing in the SUV as a completely knocked unit (CKD) from Thailand and assembling it at the Greater Noida plant in Uttar Pradesh. Earlier, the CR-V came in as a CBU that attracted additional import and customs duties that pushed its price tag enormously.

Hironori Kanayama, president and CEO, Honda Cars India, says that the company has now passed on the benefits of the reduced price to consumers. The 2.0 and 2.4-litre engines were imported earlier along with the CBU kit but now both engines are being locally assembled as well. The automatic transmission, though, is imported from Indonesia.

The fourth-generation CR-V will be offered in four trims -- two in the 2.0-litre range including the base model with a manual transmission with the five-speed automatic transmission (AT) variant priced at Rs 20.85 lakh. The two 2.4-litre models will be fitted with AT with the top-end model equipped with the AVN and costing Rs 23.85 lakh.

The company has so far sold 13,700 units of the CR-V since its launch in India in 2003 and expects sales to look up with the lowered prices of its new version. Honda, however, does not have a diesel option for the CR-V. The company plans to target the five percent premium petrol market in a total SUV segment worth 1,000 units per annum.

Kanayama agrees that Honda’s all-petrol product portfolio has put pressure on the carmaker, especially in a market has that swung to diesel in the last two years. Both the 2.0 and 2.4-litre engines are now more lightweight and fuel efficient and give 13.7kpl and 12kpl respectively as per ARAI test results. The new CR-V has been shortened by 30mm and cabin space increased.

Meanwhile, Honda Cars is gearing up for the rollout of its first diesel-engined entry saloon based on the Brio platform – the Amaze. This will be made at its Greater Noida plant initially and later at the Tapukara facility when capacity is fully used at Greater Noida.

With diesel prices set to get deregulated, the carmaker expects the pressure to ease from its all petrol portfolio. Increased cost competitiveness and faster localisation of parts is the road forward for the company to compete in the domestic market.

SHOBHA MATHUR