Auto India, Car India

Welcome back!

To boost the flagging sales of its premium hatchback Jazz, Honda Siel Cars India Pvt. Ltd is offering a discount of up to Rs 1.75 Lakh. This discount will be offered on selective models of Jazz, the sales of which are experiencing a sharp decline of nearly 40 percent.

Honda managed to sell only 643 units of Jazz in the April-June quarter of the current fiscal year, compared to the last year’s figures of 1050 units, the decline in sales are ominous signs for this model.

Despite the fact that the automobile market is experiencing a slowdown, the figures are discouraging for a model that is priced between Rs. 7.15 and 9.25 Lakh ex-showroom Delhi. The company said that the discounts are being offered by the dealers and there is no price cut from their end.

A company spokesperson told reporters: “We are not giving any discount. Discounts are offered at the dealer level depending upon the models and the variants of the car. The maximum discount goes up to Rs.1.75 lakh.”

The move comes ahead of launch of the company’s first small car Brio, which is expected to hit the markets by October this year. With the launch of the Toyota Liva, the competition is staggered further in the already overcrowded small car market. In order to establish itself in this market, Honda Brio has to compete with the likes of Hyundai i10,Ford Figo and market leader Maruti Suzuki’s Swift. The small car segment constitutes 60 percent of the total auto sales in passenger cars. This segment experienced a growth of 30 percent in the last year.

Honda Brio would be manufactured in the company’s Greater Noida Plant, which has an annual manufacturing capacity of 120,000 units. Indicating the company’s urgency regarding the launch of  Brio, Jnaneswar Sen, vice-president, marketing, sales Honda Siel told reporters at the company’s Dharuhera plant in Rajasthan: “At present, we are utilizing around 65-70% of the capacity and the rest would be utilized for manufacturing Honda Brio.” The company’s fleet in India includes premium car models City, Jazz, Civic, CRV and Accord.