Honda aims to price diesel sedan Amaze aggressively to take on segment ... - Economic Times

NEW DELHI: Slated to make its debut soon in the diesel-powered car segment with Amaze, a sedan built on the Brio platform, Honda Car India may aggressively price its new offering to take on Maruti's Dzire head-on. The wholly owned Indian subsidiary of Japan's second-largest carmaker, which last week ripped off Rs 3 lakh from the CR-V, its flagship sports utility vehicle, has become aggressive of late. Having implemented price cuts, first on the Honda Jazz hatchback and then on its flagship City sedan, Honda has pinned hopes on the Amaze to regain market share. The Amaze is to be pitted against Maruti's hugely successful Dzire, which is the largest-selling sedan in India and is available in both petrol and diesel versions at Rs 4.92-7.5 lakh (exshowroom Delhi). Honda is keeping its pricing strategy a closely guarded secret, but experts say a jackpot is possible only with a prudent pricing. "We will outline a strategy close to the debut of the car," says Jnaneshwar Sen, senior vice-president (marketing & sales), Honda Car India. In recent months, the company has been expanding its dealership network to far-flung towns such as Gangtok, Asansol, Dibrugarh, Tirupati, among others, shedding its image of being an urban-centric carmaker. "Honda needs to pull up its act. While there isn't much to cheer about, the Amaze should be the booster shot it desperately needs to get back into the reckoning," says Deepesh Rathore, India MD for IHS Automotive in New Delhi. Honda's plans to launch a diesel sedan come at a time petrol cars are making a comeback. In fact, one of the biggest beneficiaries of that trend, Honda sold out all its cars in January. "We could have sold more petrol cars in January if we had more stock," rued Sen in an interview to ET. While rejuvenated demand for petrol is somewhat reviving its fortunes, Honda hopes to gain momentum with the diesel sedan. Unfazed by the tag that Honda is a late mover and that the trend in India is shifting in favour of petrol cars, Sen argues: "It is never too late for a country like India. While there is a firstmover advantage, we'll redefine the segment." "Whichever way the market goes, we are sure to win because petrol is our forte...," he reasons. To get the price right — after the Jazz debacle — it is leveraging cost synergies with the Brio hatchback, Honda's cheapest car in the world, to grab some instant attention of the Indian customer. It is targeting a high local content for the diesel car, somewhat like 80% enjoyed by the Brio. "We are the first one to get an all-aluminium diesel engine in Amaze. It would be highly localised to keep costs extremely competitive for the price-conscious Indian customer," Sen added. The sub-4 metre Amaze compact sedan would also invite a much lower 12% excise tax than 24-27% levied on bigger cars. Honda plans to utilise its second plant, in Tapukara in Rajasthan, to make critical engine parts and body shells to control price and keep costs low. However, the Amaze would be rolled out from the existing manufacturing plant at Greater Noida in Uttar Pradesh, where the Brio, City, Civic and Accord are made and the new CR-V is being assembled now. Slated to make its debut soon in the diesel-powered car segment with Amaze, a sedan built on the Brio platform, Honda Car India may aggressively price its new offering to take on Maruti's Dzire head-on. via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNG7_wXjkV6yD0BGSAUB9V06iViWAw&url=http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/honda-aims-to-price-diesel-sedan-amaze-aggressively-to-take-on-segment-leader-marutis-swift-dzire/articleshow/18601977.cms?google_editors_picks=true

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