Honda continues to bet on sedans amid heavy focus on SUVs

NEW DELHI: At a time when the auto industry is betting heavily on SUVs, Japanese Honda Cars still has its focus firmly on sedans. The company drove in the next-gen version of Amaze entry sedan, priced between Rs 8 lakh and Rs 10.9 lakh (ex-showroom), to take on

Maruti’s newly-upgraded Dzire.

Honda, which has been working to revive its fortunes in India after it got moderate response to its Elevate mid-sized SUV due to stiff competition from the formidable Korean duo of Hyundai Creta and Kia Seltos, plans to drive in pure electrics and hybrids from 2026-27 onwards, company president & CEO Takuya Tsumura said.

With the new-designed Amaze, which is in its third-generation now, the company is hoping to grab customers of hatchbacks as well as mini SUVs within its fold. “We sold 5.8 lakh units of the previous generations of Amaze, and are confident that the new version will help us grow our numbers and market share further,” Tsumura said.

The company is banking on the Amaze and old warhorse, the City premium sedan, to keep up the momentum in the market till it begins to introduce all-new products from 2026-27 when it drives in its first fully-electric SUV, apart from two additional ‘electrified’ models which are likely to be strong hybrids. “Our future line-up will be mainly of hybrids and pure electrics,” the company CEO said.

Honda’s domestic sales are likely to be flat in 2024 at around 87,000 units as the company suffers from lack of options in SUVs, or other premium flagship models. The company had decided to phase out models such as the Civic sedan and the CR-V bigger SUV after an unsatisfactory performance in the domestic market.

Tsumura said the govt should look at providing benefits to hybrids which – at around 43% -- are currently taxed much higher than the 5% GST fixed for electrics. “The taxation should come down. If we get something between pure ICE (internal combustion engine) vehicles and electrics, it will be good.”

The company has also been exporting cars to maintain economies of scale at its India factory which is located in Rajasthan.