Honda advances Jazz launch by six months
Slowdown or no slowdown, the demand for small cars will continue to be
there. No wonder all auto majors are sticking to their plans for small
cars. In fact, Honda Siel Cars India (HSCI) has preponed the launch of
Jazz in the country by six months. However, the company s first compact
car in the country will now be rolled out from its Greater Noida
facility as against the initial plans of manufacturing it at the
upcoming plant in Rajasthan as HSCI has postponed the assembly
operations there. The company has recently doubled the capacity of the
Greater Noida plant from 50,000 units to 1,00,000 units and is
currently doing 5,000 units a month. We were earlier planning to launch
Jazz in the end of 2009 but now expecting that the financial conditions
will improve in six months down the line and considering that the
market is waiting for the vehicle ever since it was showcased at the
auto expo, we have decided to now launch it in the summer of 2009, says
Jnaneswar Sen, senior general manager (marketing), HSCI. The Greater
Noida facility can be expanded beyond 1,00,000 units and we roll-out
Jazz from here. While the number of units is still not decided, the
company is currently manufacturing 60,000 units on an average of its
existing models and Jazz would be over and above this depending on the
market conditions, Sen added. According to Sen, people who are
postponing their car purchase now due to high interest rates and
unavailability of funds will eventually start buying once the cut in
interest rates percolate to the auto sector. Compact cars constitute
around 75% of the total passenger cars sold in the country. However, in
the recent financial meltdown even this segment has witnessed a dip and
this has resulted in an overall dip in sales in the country. According
to the Society of Indian Automobile Manufacturers, the total passenger
car sales in the country dipped by 19.4% at 83,059 units in November as
against 1,03,031 units during the same month last year. Even the
compact car sales went down by 21.2% at 60,983 units last month as
compared to 77,359 units in November last year. However, sales of HSCI
went up by 15.14% in November at 5,095 units as against 4,425 in
November last year, thanks to its recently launched Honda City.
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