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Honda Amaze Sedan To Replace Jazz In India
According to news learnt by Autocar India, Honda Car India has stopped production of its Jazz hatchback. The news has surprised everyone in automobile circles in India, since Jazz had been doing pretty well for the last year or so. Honda will still value existing bookings, but new bookings have been suspended.
Honda introduced Jazz back in 2009 as a premium hatchback, with a price tag exceeding INR 7 lakhs. Honda soon realised that this pricing strategy was not working well for Jazz as many buyers in the country prefered a sedan over a hatchback at that price range. This forced Honda to cut down the price by more than INR 1 lakh in 2011.
The price drop had a positive effect on Jazz sales and soon it gained a fan following. However, it is believed that Honda was losing money on every Jazz sold. To reduce losses, Honda restricted jazz sales to just about 400 units every month, but this increased the waiting period, since the demand was a lot higher. This could very well be one of the reasons why production is being suspended temporarily.
Yes, the new 2014 Jazz is set to come back during the second half of 2014. The new model will be introduced at next year's Delhi Auto Expo and will be powered by the same 1.5-litre i-DTEC diesel engine that will appear in the Amaze sedan. There will also be a 1.2 petrol engine and possibly, even a hot hatch version fitted with a 1.5 liter unit.
Another reason why Honda could be withdrawing Jazz this year is to make space for Amaze diesel. Honda's first diesel car in India, the Amaze sedan will be priced around the same price range as Jazz, which could adversely affect sales of both models. Amaze is set to be launched in the country during April.
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