Honda to launch Jazz in June at Rs 5.5 lakh onwards

After a decade long operations in India, the largest player in the mid-size cars, Honda Siel Cars (HSCI) is entering the high volume hatchback category with its small car Jazz, a top company executive said. The car will have a new 1.2 litre engine developed exclusively for the Indian market, carrying highest fuel efficiency in its segment.



Jazz also called Fit in certain markets, is the only small car in Honda's global portfolio. To be launched in India in the month of June, Jazz is likely to be the most expensive petrol hatchback in the market with an expected base price of Rs 5.5 lakh. It will be pitted against Skoda's Fabia, Tata Motors' Indigo, Ford Fusion and Hyundai's Accent besides Ritz the upcoming product from Maruti's stable.

Speaking to ET, HSCI managing director & CEO Masahiro Takedagawa said, "Jazz will have all the features found in a premium large car. Our survey shows that 80% hatchback customers feel that these cars lack legroom and headroom space which we have addressed in Jazz."

He added, "We have designed a special engine for India to optimise fuel efficiency and power, which delayed the launch by one year. Jazz also comes strapped with a toughened suspension to meet stiff roads conditions in India."



The car is based on Honda's City platform and will have a high 70% localisation. Jazz is likely to endorse Honda pioneered V-Tec technology for high fuel efficiency, which is already used in the Honda City engine. Jazz will also qualify for the concessional 8% excise duty under government's small car definition.

"We will try to pass the benefit of lower excise duty on Jazz but 30% of its components are imported and the weak rupee may lead to a higher price," Mr Takedagawa said. He however added that he company is not positioning Jazz as a volume generator and its best-selling sedan City will remain the largest car for Honda in India.

Jazz will have customisation option for navigation system, in-car entertainment, sporty tyres and other gizmos at the dealer level. It will be launched with manual transmission and will be studded with an automatic transmission later.

According to sources in the automobile market, Honda could also launch a diesel variant of Jazz in the next few years. The company is targeting smaller cities and towns for the new car and plans to add 10 more dealerships in the next one year to the current tally of 106 across the country.

New Ford Ikon receives overwhelming response in India

The newly launched Ford Ikon has received a fantastic response from Indian car enthusiasts across the country. Proving its popularity in the segment, the Ikon has already registered over 2000 bookings in less than a month since its launch.

On November 5, Ford India launched its new Ikon range, offering significant improvements ranging from a new advanced DuraTorq TDCi engine with superior fuel efficiency, to stylish and fresh looks drawn from bold European design cues. Complementing this is the class leading warranty and significantly lower cost of ownership that the new Ikon boasts of.

Timothy Tucker, vice president, sales, Ford India added, ``The new Ford Ikon has received terrific reviews across the country and is testament that the company have its fingers strong on the pulse of the customers. Dealers across India are echoing of heightened consumer interest and dealerships such as Kairali Ford, Bhagat Ford, Harpreet Ford, Rajshree Ford and MPL Ford have shown exemplary efforts in registering maximum bookings. The company is confident that the Ford Ikon will continue to post excellent sales results in the coming months as well.``

Ford has introduced the advanced 1.4-litre DuraTorq TDCi engine in the new Ikon to complement the current 1.3-litre petrol engine, offering consumers the choice of two of the best power trains, tailored to suit Indian driving conditions.

The new Ford Ikon has real appeal for those looking to complement their lifestyle with an energetic, stylish, affordable mid-size sedan.

Ford India is a wholly-owned subsidiary of Ford Motor Company, a global automotive industry leader. Ford India manufactures and distributes automobiles made at its modern integrated manufacturing facility, at Maraimalai Nagar, near Chennai. With more than 2100 employees, the company`s models include Ikon, Fusion, Endeavour and Fiesta.

Ford India to market new fuel-efficient vehicles

Ford India has announced plans to market a new line of fuel-efficient vehicles.

The cars, which will be available for sale in 2010, are fueled by compressed natural gas and liquified petroleum.

Ford India currently distributes Ikon, Fusion and Fiesta cars, as well as the Endeavor sports-utility vehicle. However, the worldwide economic recession caused sales to plummet by 22.5 per cent from April-September 2008. Nevertheless, the company still managed to ship a total of 4,062 cars and SUVs during the troubled period.

"The credit crunch and the lack of confidence has affected [us] in the short-term," admitted Michael Boneham, president of Ford India. According to Boneham, the company expected 2009 to be a tough year for the industry with a single-digit growth (rate). However, the optimistic president projected that sales would increase when Ford launched its fuel-efficient small car in 2010.

Ford will undoubtedly face stiff competition from a number of companies vying to dominate the lucrative Indian automotive market. For example, Toyota is reportedly developing a new fuel-efficient vehicle expected to retail at $5,000. In addition, Tata is slated to launch its affordable $2,500 Nano sometime in the near future.

Ford sets early 2010 target to launch small car in India

Armed with a $500-mn investment outlay, Ford Motors has set early 2010 as the target to launch a small car in India, start its new engine-making unit and double the assembly line capacity, a top official said here.

The US-based giant will also unveil its refurbished Ikon by next month to expand its range of offerings in the country that includes Fusion, Endeavour and Fiesta, said Michael Boneham, managing director and president of Ford India.

"Ford now has a presence in only 30 percent of India's automobile market segments. We are entering other segments too. These are exciting times," Boneham told IANS at the company's factory at Maramalai Nagar on the outskirts of the Tamil Nadu capital.

"We are also commissioning a new engine manufacturing unit. It will serve both the domestic and global markets. It will have the flexibility to produce diesel and petrol engines. The idea is to go for higher localisation in the months to come."

Speaking about the small car project, the Ford official said it was being designed and developed specifically for India by a global team. "It will meet the needs of Indian conditions - like water wading, air-conditioning and emission standards."



While declining to divulge any further information on the project, Boneham said it will have a sub-1.2-litre engine with a length of no more than four metres to avoid higher taxes. "It will be very, very competitive in that segment."

Ford's first offering here was the "Josh machine" Ikon that rolled out in 1999 from this city, often called the Detroit of India for hosting auto companies like Hyundai, BMW, Mitsubishi, Ashok Leyland, Caterpillar, TVS, Tafe and Same.

Nissan and Daimler are among some global players that have definite plans to set up their units in this city.

Boneham said the company's integrated engine plant for 250,000 units per annum will be its first outside Europe and will make low-displacement engines for cars to be rolled out of its Indian plant for both domestic market and exports.

He said the existing $26-mn diesel engine assembly plant, with a capacity for 50,000 diesel and 10,000 petrol engines for Fiesta and Fusion, would be eventually integrated with the new plant.

The company has the capacity to assemble some 100,000 cars per year at its facility here, which will be doubled to 200,000.

Queried about the future of its tie up with the Indore-based Avtec that supplies 1.6 litre petrol engines, Boneham said: "We will continue to work with them. We will look at sourcing components from Avtec."

He also sought to dispel the perception that the cost of ownership of Ford cars was high compared with those offered by Japanese and South Korean companies, as several factors like fuel efficiency and servicing were also involved.

"As per our study, in some parts we are costlier and in some others we are cheaper. Overall, we are very competitive in this area. We are working to lower component costs further. Our diesel engine is more fuel efficient than many others," he said.

"High localisation is intended to achieve that. We are extremely quality conscious. Today, we can say we are far more satisfied and comfortable with our vendors."

Ford plans to roll out small car by 2010

WITH US automaker Ford’s Indian subsidiary announcing its intention to launch a small car in India by 2010, the Indian small car market is set to witness an explosion of small cars. Carmakers are racing to get products on the road by 2010, with global auto giants like Honda, Nissan, Daimler Chrysler, General Motors and home- grown Bajaj Auto all announcing plans to launch their small car by 2010. Tata Motors’ ultra low- cost ‘one lakh rupee car’ Nano, unveiled in January this year, has ignited competition in this sector, hitherto dominated by Maruti Suzuki.

By 2010, the demand for cars is expected to almost double to two million a year. Said Michael Boneham, managing director and president ,Ford India, “The small car segment has 75 percent share on the Indian market, and when we launch the small car, that’s when the real volumes will come in.” This shift in Ford’s strategy is touted by analysts as a global business strategy adopted by other global automakers like Nissan, Renault, Toyota and Honda. All these have acknowledged the merit and scope of producing an ultra low- cost car (ULC). Besides this, looking at factors like fuel economy and volumes, global auto companies are under pressure to target this growing segment, analysts say. Ford’s small car will most likely be sold with diesel and gasoline engine options, Boneham said, on the sidelines of a news conference, to launch an upgraded range of Fiesta sedan cars.

Ford’s new engine manufacturing facility will be set up in 2009- 10 with a capacity of 2,50,000 units per year. “The plant will fulfill the entire domestic demand and will also cater to the needs for ford in the Asia Pacific region,” said Boneham. Ford currently produces the Fiesta, Ikon and Fusion sedans, and the Endeavour SUV in India. The company had recently shut plants and cut workforce in North America amid financial losses. It has announced plans to invest $500 million in India to expand production capacity and make the new small car.

Ford is also exploring the possibility of introducing eco- friendly vehicles that run on alternative fuels or hybrid cars in the Indian market. According to the McKinsey Global Institute, consumers in the Rs 90,000 to Rs 2- lakh- a- year salary bracket will form the largest portion of India’s income pyramid in 10 years. These form the target for Tata’s Nano. Now, even global auto makers are targeting this segment. Toyota Kirloskar Motor (TKM), a joint venture between Japan’s Toyota Motor Corp. and India’s Kirloskar Group, also plans to invest Rs 1,400 crore on anew plant in Bengaluru, from where it will roll out its small car in abid to tap the largest segment of the car market in India. Said Vaishali Jajoo, auto analyst, Angel Broking, “Growth for global auto markets in developed markets is in single digits, whereas the small car market is projected to show a double digit growth in the coming five years. Besides this the (small car) market contributes over 50 per cent to the overall car sales in the country. Factors like cost efficiency are also a big push for global biggies.” The move has also set off a flurry of activity among component vendors, with most original equipment manufacturers (OEMs) gearing up their volumes for small cars to be launched by Renault- Nissan, Bajaj, Honda, General Motors and others.