Developing all new SUV for Indian market: Honda

Japanese auto major Honda is in the process of developing an all new SUV for the Indian market as it looks to enter the segment which has been growing at a very fast clip, according to a top company official.

The company, which sells models like Amaze, City, Jazz and WR-V in the Indian market, currently lacks presence in the SUV segment after discontinuing CR-V sales last year. "We have studied how to launch an SUV (in the Indian market). So now we can confirm that we are in the developing phase to launch an India specific SUV," Honda Cars India Ltd (HCIL) President and CEO Gaku Nakanishi said in an interaction.

He declined to share any details regarding the size or the expected launch time-frame of the product. Nakanishi, however, noted that the company already has a notable presence in the sedan segment with Amaze and City and now it would like to enter the SUV segment in order to fill the gap which exists in its current product line-up.

He added that according to company estimates, the SUV segment's contribution in the passenger vehicle segment is set to cross 40 per cent in the coming days. According to the industry estimates, SUV share in the overall passenger vehicle sales currently stands at around 34 per cent. Nakanishi noted that the company's commitment towards the Indian market remained unchanged and it would continue to offer the best quality products to its customers in the country. HCIL Senior Vice President and Director (Sales and Marketing) Rajesh Goel noted that the shift towards SUVs is a global phenomenon but in India it was slightly more owing to road and traffic conditions. He, however, said that despite a strong pull towards SUV sales, the market continues to see decent sales of sedans as well.

"We have multiple segments in the Indian market and every segment has a particular space. So there would be customers who would keep preferring sedans. A lot of sedan launches by luxury carmakers in the last one year is proof that demand is there for such models," Goel said. When asked about the company's plans regarding the EV space, Nakanishi noted that Honda's electrification journey in the country would start with hybrid vehicles.