Honda Plans New Models to Bolster Sales in India

Honda Motor Co. plans to supplement its sagging model lineup in India with imported vehicles better aligned with the market’s shift from cars to SUVs and from diesel to gasoline engines.

Honda posted sales in India of 192,100 units in fiscal 2015-2016. But its deliveries in the past six months plunged 23% to 74,900 units. The company says it hopes to reverse the slump by adding more features to its entry-level Amaze small sedan and Brio five-door hatch variant.

Honda is attempting to speed up a shift in its mix from diesels to gasoline engines. Demand for diesels has plummeted this year following a regional ban on the sale of such engines larger than 2.0 liters in New Delhi. The ban cut the proportion of new cars equipped with diesels from 40% to 28% this year.

The company also aims to tap India’s booming SUV/crossover market by launching local production of its HR-V and WR-V mini-crossovers beginning next spring. Both of those models ride on the same platform that carries the Honda Jazz/Fit small hatchback.

Honda operates two assembly plants in India with combined capacity to make 240,000 vehicles per year. Its current locally produced models are the Amaze, Brio, BR-V crossover, City compact sedan, CR-V compact SUV, Jazz and Mobilio MPV.

The company also has proposed building a third factory in Gujarat that will be able to produce as many as 100,000 unspecified vehicles annually.