Honda, the Japanese automobile manufacturer recently Introduced its new Elevate EV in India. What’s special about it? It’s an India-focused SUV by Honda meaning the car will be built in India, at the Tapukara facility in Rajasthan to be exact.
Honda’s Comeback in the SUV segment
We need to rewind a bit back in time for this. Honda’s journey has been quite the roller-coaster ride in India. While its sedans like the City and Amaze have been quite popular among the masses, their SUVs weren’t so lucky. The company did launch the WR-V and CR-V, the former being actually a good car, but the fact that Honda was selling old versions in the Indian market was a reason for their failure. Of course, who would buy an old version of a car when the competitors are selling better alternatives. The only thing they had going on for them was their reputation for being reliable, which eventually was overshadowed by all the issues their cars had. Also, given the rise of favoritism in the SUV cars, only having sedans in their portfolio hampered Honda’s sales a lot. The company even had to shut down the production of its Greater Noida plant.
So, the plan to release 5 SUVs by 2030 in India is a good way for Honda to re-establish itself in the fast-growing SUV segment.
5 Honda SUVs by 2030
, “We have planned a very robust product strategy for India. We plan to have 5 SUVs by 2030. While India will be a lead market for Elevate, it will also be a key export hub for the model in the future. Honda Cars India also plans to bring the electric version of Elevate to the market in the next 3 years.”Mr. Takuya Tsumura, president and CEO of Honda Cars India
Of course, to achieve a big goal you need a big plan. In Honda’s case, the plan is simple and for those of you who didn’t understand the timeline, Honda basically plans to introduce one model every year in India and to solidify their position in the country, the company is looking at the potential to bring in premium models through the CBU and CKD route to India.
Honda also invested Rs. 260 Cr in the customer Interface of its showrooms and the brand claimed that it has about 326 outlets across 238 cities.
Honda’s SUV segment Competition
With a big segment, comes huge competition. Honda’s re-entry into the SUV segment happens at a time when SUVs are dominating the Indian market, accounting for almost 40% of the overall share. The Elevate will have to compete against some already established names like the Hyundai Creta, Kia Seltos, and Maruti Suzuki Grand Vitara.
What success Honda got with their sedans won’t be the same in the SUV segment since the competition here is quite fierce and with India becoming a growing market for these big boys, the challenge will only Increase for Honda.
Honda will launch the Elevate in India first, followed by the outside markets.