Honda weighs making CR-Vs

At present, they are directly imported from Japan

MUMBAI: Honda Siel Cars India (HSCI), whose plant is located at Greater Noida near Delhi, is exploring the option of manufacturing the CR-V here.

At present, this sport-utility vehicle (SUV) is directly imported from Japan as a completely built unit and sold in the Indian market. 

Masahiro Takedagawa,  president and CEO of HSCI, told DNA Money: “We are studying the possibilities of producing the CR-V locally, which will help us become a far more active player in the growing SUV market.”

On an average, about 300 units of the CR-V are retailed here every month.

Its landed price works out to about Rs 20 lakh. Of this, import duty component accounts for nearly half the figure.  

Should Honda eventually decide to manufacture the CR-V in India, it will target a price tag of Rs 12-14 lakh, which is bound to attract the customer.

The CR-V is the lead player in the top-end SUV segment, a list that includes the Ford Endeavour, Mitsubishi Pajero, Suzuki Vitara and a host of other models, most of which are imported directly.

Local production could also translate into more numbers and HSCI clearly believes that there is potential to increase market share, especially when the vehicle has built a solid brand image for itself here.

According to Takedagawa, the company is extremely bullish on its prospects in the overall automobile market even while the current fiscal has been little to write home about in the premium car segment.

It hopes to close this fiscal with the production of about 68,000 units comprising the City, Civic and Accord.

HSCI has already announced its intent to manufacture over 150,000 cars by 2010, the year when annual car production in the country is expected to be in the region of 2.5 million units. Takedagawa said the new hatchback, which will roll out in a couple of years, would also be a critical growth driver for the future. The car, tipped to be a derivative of the Jazz, will be produced at the company’s second plant in Rajasthan, which will be commissioned by 2009.
 
“Honda will strive to redefine the image of the hatchback with this model,” he added.
 
The new plant will be different from the existing one at Greater Noida in terms of greater emphasis on local production. For instance, at present, body panels are imported but this will no longer be the case in Rajasthan where a stamping facility is being installed for this purpose.

Similarly, plans are on to localise critical engine components so that costs are kept in check and the objective of larger volumes becomes a reality soon.