New Honda Compact Car to be Priced Below Rs. 5 Lakh in India

Small cars or compact cars go pretty well with the populace here in India and Honda gauging this aspect, decided to introduce the Jazz here. However, many prospective buyers of the car have been put off by the high price of the car, which has not even launched as yet. But if you remember, the Japanese car maker was working on two, not one, small cars for the country.

Now Indian newspaper, The Times of India, is reporting that Honda Siel Cars India (or HSCI) is planning to get their other small car with a price tag that would be below the Rs. 5 lakh mark. In fact, officials from the company have pointed out that a new team focused on research and development would be in place from next month.

Elaborating more on the team, an official from Honda India explained, “The R&D team will be headed by a senior Honda official from Japan. The expected size of the team is around 25 members and it will also have people from Honda’s India operations from departments like manufacturing and purchase.” The new compact car by Honda India is expected to be priced somewhere around Rs. 4.5 lakh.

Though there is no word on the release date, it is expected to be out within the coming three years. The R&D team will not only work on the indigenization of the car but also on the localization of the production of key components, which will keep the costs low.