Honda India has axed its plans to launch the HR-V in the Indian market, after failing to bring down the cost of manufacturing even after multiple attempts. Honda will now be compensating its vendors who supplied parts to let Honda run a couple of successful trials of HR-V's production run.
Honda Cars India has called off plans of introducing the HR-V after multiple spottings of the prototypes on the Indian roads fuelled rumours of an imminent launch. The HR-V is a 5-seater SUV that is sold across the globe under HR-V and Vezel monikers. The plans to launch the HR-V were concrete since HR-V could have easily taken on models like the Hyundai Creta, MG Hector, Tata Harrier, and Kia Seltos.
Honda HR-V India launch plans have been shelved as the manufacturer has realized it was impossible to price the car realistically
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Rumours on Honda HR-V India launch were not new as the company regulated a feasibility study in the year 2013, after the car’s launch in the USA and Japan. Honda dropped the plans to launch the car then, as they realized it was impossible to launch the SUV at prices that would have been competitive enough to take on the competition. It was in 2017, Honda raised the toast again for the HR-V after tasting success from WR-V. Since WR-V helped Honda to double up their market share in UV segment of the country, from 3.54% in fiscal 2017 to 6.60% in fiscal 2018, bringing in the HR-V to the competition looked like the subterfuge to take on the UV segment once again.
Honda considered HR-V for India after the successful stint of WR-V.
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With concrete plans to commence the production in 2017, Honda started setting up the required jigs and fixture to assemble the HR-V locally alongside the Civic and CR-V at their Greater Noida facility. The company also asked its vendors to supply the material required to register a trial run for the production of the HR-V, and did produce 4-5 prototypes of the same in the production run. The company even had plans to conduct a full-fledged test run to check the capabilities to host the car’s mass-production run.
With so much on HR-V’s side, Honda called it an off at the last moment as it could localize only 30% of the car’s component and the cost of importing other from Indonesia and Thailand added a premium to the car’s cost. It seems liek the clever pricing of the MG Hector and Kia Seltos has already made this game a tough nut to crack.
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Honda currently sells HR-V in every corner of the world, even in Pakistan, but India won't see its arrival anytime soon.
Honda India would now be compensating its supplier who participated in the trial production run. The supplier developed different tools, jig, and fixtures, to assist the production of HR-V, to which Honda has officially penned a full stop. Though the parts and investments can be used to cater to the production of Jazz and City, since, they share underpinning with HR-V. But in the current state of the auto sector, which is experiencing mundane sales, Honda seems to have taken the right step at the right moment.
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As of now, Honda is focusing on coming up with what it is best at, yes!, the Honda City! India will be one of the first few markets to get the new-gen model of the popular C2-segment sedan.