New Delhi, January 05: Japan’s Honda Motor Co said on Tuesday it would begin selling a new compact car in India in 2011 as it seeks a foothold in the fast-growing segment.
The 5-seater family car will be based on the “Honda New Small Concept”, unveiled at the Delhi Auto Expo on Tuesday, and is being developed especially for India and other emerging markets, the company said.
Japan’s No.2 automaker said it would aim to offer the model at an “affordable” price by leveraging its global parts sourcing network.
“Honda will strive to introduce a small car with a competitive price in the entry level of the hatchback segment,” said Koichi Kondo, Honda’s executive vice president.
Kondo added that the company will further increase local procurement in India to price the car attractively for Indian customers.
Japanese rivals Toyota Motor Corp and Nissan Motor Co are also planning their own entry-level cars in India, with production scheduled to begin this year.
The low-cost, compact car segment is seen as crucial to expanding in emerging car markets, with global automakers such as Volkswagen AG and General Motors also seeking entry.
Honda markets itself as a premium brand in India, where it is minor player with sales of just 58,285 cars in January-November of last year, giving it a market share of 2.9 percent.
—-Agencies