Honda considering Jazz hatchback car for India

After a few months of being on the backburner, The Honda Jazz is back in conderation for an India launch.

10 February 2006
MUMBAI, INDIA

The Honda Jazz is a popular hatchback car, currently sold in Europe, Japan, Indonesia and Thailand. The Times of India reports that according to Masahiro Takadegawa, president and CEO of Honda SIEL cars, Honda is seriously looking at entering the Indian small car market in the near future, and the Honda Jazz is being seriously considered.

In China, the Honda Jazz with a 1.3 liter engine is known as the Honda Fit saloon. Built on the Honda City platform , the Honda Jazz is expected to be priced in the Rs 5 to 6 lakh range.

The pricing in the Indian market would be tricky, as the Jazz has to be profitable for Honda, as well as stay reasonably below the Honda City to ensure it doesn't cannibalise the low end Honda City cars.

Once a small car like the Jazz enters the Indian automobile market, Honda would have a car in every category. Honda already has the Honda City ZX and other vvariants in the mid-size saloon market, The Honda Civic (due for launch in 2006) as a larger saloon, The Honda Accord in the luxury segment and the Honda CR-V as a city crossover SUV.

The launch of the Suzuki Swift in India forced Honda last year to re-calculate its plans for India. Originally, Honda SIEL had planned to enter India with cars from Daihatsu whcih could be priced lower in the Indian market. However, the tremendous response to the Swift forced a relook - the Indian customer now expected a lot more sophisticated car than a Daihatsu hatchback, and the Jazz initially was considered a bit too expensive a car for India. The production of the Jazz will still be a tough feat for the car manufacturer to stay within the price range and have a car in the Indian market that can beat the Suzuki Swift.

2006 will also see the launch of the Chevrolet Aveo from General Motors.