While maintaining its commitment towards the sedan segment, with plans for product updates going forward, Honda Cars' primary focus will be on SUVs.
04 Dec 2024 | 41011 Views | By Kiran Murali and Ketan Thakkar
With the third generation of its entry-level sedan Amaze launched on Wednesday, Honda Cars India is looking to sustain the product excitement; as it envisages introducing three new SUV models in the financial year 2027.
“We are going to introduce three models in 2026-27,” Honda Cars India President and ...
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With the third generation of its entry-level sedan Amaze launched on Wednesday, Honda Cars India is looking to sustain the product excitement; as it envisages introducing three new SUV models in the financial year 2027.
“We are going to introduce three models in 2026-27,” Honda Cars India President and CEO Takuya Tsumura said. The automaker is gearing up for future growth with plans to launch five new SUVs by the end of the decade, with India playing a pivotal role as an export hub.
Honda Cars has been struggling to maintain its share in India's passenger vehicle market with its limited product line-up. Till the middle of last year, the company had only two products in its portfolio – mid-size sedan City and entry-level sedan Amaze.
Although a late entrant to the SUV craze in the Indian market, the automaker shifted gears and made a bold move into the segment with the launch of its mid-size SUV Elevate, during last year’s festive season.
While maintaining its commitment towards the sedan segment with plans for product updates going forward, Honda Cars' primary focus will be on SUVs. The Indian passenger vehicle market has recently seen a significant shift towards SUVs, with the segment now accounting for more than half of the cars sold in the country.
“The market shift is more towards SUVs. That is why we decided to put more models on the SUV side. By 2030, we will have five models. One is Elevate, and the other one is an electric vehicle based on Elevate. But actually, we are now planning to introduce more in the market,” Tsumura said.
While Honda Cars has managed to capture a foothold in the mid-size SUV market with the Elevate, its overall market share in India has dropped to below 1.5%, down from 2.4% in 2022-23. This decline was largely due to the shrinking demand for its core strength – sedans.
When asked about the delay in putting more SUV models into the market, Ryuto Shimizu, Director of Marketing said, “At the moment we are making the Indian customers wait a little bit more. But from 2026-27, we will be able to give good news regarding models and new powertrains. It is just about a matter of time.”
In 2023-24, Honda Cars sold 86,584 vehicles in India, down 5% on a year-on-year basis. However, the company managed to post a 16% on-year growth in its revenue to Rs 16,461 crore, driven by a 64% jump in export volumes to 37,660 units. Profit before tax grew 25% to Rs 1,029 crore during the year.
Honda Cars India entered the Indian market in 1995, bringing with it a legacy of Japanese engineering.
The company initially made a splash with the Honda City, launched in 1998. This sedan became synonymous with reliability, performance, and premium appeal, quickly establishing itself as a benchmark in its segment. Over the years, successive generations of the City have retained this crown, making it one of Honda's most successful models in India.
In the early 2000s, Honda expanded its lineup with models like the Civic and Accord, catering to the aspirational urban customer. Both were lauded for their stylish designs, cutting-edge features, and smooth performance. However, the high price tags and limited diesel options restricted their mass appeal.
Honda's foray into compact cars with the Jazz and Brio brought mixed results. While the Jazz was appreciated for its practicality and premium build, its premium pricing deterred budget-conscious buyers. Similarly, the Brio struggled to compete in the fiercely competitive small car market.
The introduction of the Amaze in 2013 marked Honda’s move into the compact sedan space, a segment crucial for the Indian market. The Amaze became a significant success, especially with its diesel variant, catering to fuel-conscious customers.
Honda also ventured into the growing SUV segment with the CR-V and later the WR-V, though these models faced stiff competition. The absence of a strong mid-size SUV until recently was considered a missed opportunity.
(with inputs from Mayank Dhingra)
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