Honda to focus on premium products to grow India biz J

Japanese auto major Honda plans to launch at least one new model every year in India with a focus on premium products as it looks to get its business on track in the country. The company, which on Thursday introduced an updated version of its mid-size sedan — City, plans to focus on products which are over Rs 10 lakh price tag powered by petrol and hybrid powertrains. The company, which is present in India through a wholly-owned subsidiary, plans to do away with diesel models in the country. In a press briefing, Honda Cars India President and CEO Takuya Tsumura said the company would focus on the Rs 10 lakh and above segment over the next few years. ”In the passenger vehicle segment more than 40 per cent sales are coming from models priced over Rs 10 lakh. We expect this to grow more. Our focus would be on model introductions in over Rs 10 lakh segment,” he noted. Tsumura said that for Honda models like Amaze and City, top trims currently contribute over 60 per cent of the sales. He noted that new models would be a mix of new models and full model changes of the existing product range. The company is also planning to bring in imported models to the country as part of its strategy to focus on premium products in the country. Honda has already initiated a revamp of its sales network across the country with an investment of Rs 260 crore. Of this, Rs 100 crore has already been invested so far. Honda has seen its market share in the domestic passenger vehicle segment drop from 5.44 per cent in FY19, to 2.79 per cent in FY 22.