The Indian small-car automotive industry is dominated by Maruti Suzuki, a joint venture between Suzuki Motor Corporation and Maruti Udyog Limited. Now there is another player who wants to challenge the giant in one of the world’s most promising upcoming markets – Honda Motor Co.
Honda intends to make it’s first small car in India in 2009, at a new factory in the western state of Rajasthan. Small cars make up three quarters of all cars sold in India. “With GDP growth and an increase in individual incomes, car sales will continue to grow in India despite some issues like the rise in interest rates and oil prices,” said R.K. Gupta of Credit Capital Asset Management in New Delhi.
However, Honda does not intend to go head to head with Maruti Suzuki, instead it will try to sell a similiar car but positioned as a more premium offering. A hatchback, most likely. Like the Honda Jazz? Honda cars in India are all more premiumly priced than it’s equivalent competitors – the top-end Honda Accord is about 17 percent costlier than the top of the range Hyundai Sonata Embera.