Japanese carmaker Honda wants to double its market share in India and is banking on compact SUVs and sedans – rather than small cars – to build up volumes.
Honda is currently the fourth largest carmaker in India, with a market share of 5.55%, and it is aiming for 10% by tapping the country’s growing appetite for SUVs and mid-size sedans, Economic Times has reported.
Currently, utility vehicles account for 25% of India’s overall market and the compact SUV space within that segment has been growing at over 25-30% over the past few years.
Honda wants to take on Maruti Suzuki’s Vitara Brezza and Hyundai’s Creta. The company’s unexpected success with WRV, a compact utility vehicle built on its hatchback Jazz platform, has prompted the carmaker to look for a dedicated SUV option.
The company feels that other than WRV and Jazz, its mid-size sedans such as Amaze and City will help build volumes, whereas brands such as Civic, Accord and CRV will work on the premium image around the brand.