Honda India could introduce an all-new product that would compete with Renault Kwid. The small car segment is huge in India and Maruti Suzuki is leading this segment with its Alto model. Renault Kwid is the new kid on the block and is creating quite a name for itself.
Currently, Honda offers the Jazz in the premium hatchback segment, while the Brio is a premium compact hatchback. The Brio has been used as a base for several vehicles in the Indian market. Honda has developed the Amaze compact sedan and Mobilio MPV from the Brio platform.
Honda engineers will have to develop an all-new engine that is small, yet powerful and high on fuel economy. All these combinations are tough to achieve with a single engine; however, Honda is known for their reliable, efficient, and refined petrol engines.
The competitors like Maruti and Renault use a 799cc, inline three-cylinder petrol engine. Honda too will have to develop an engine on similar lines. The key is pricing, and if Honda opts for a larger displacement engine, a competitive pricing strategy may not be achieved.
Concerning safety, Honda will adopt Renault and Maruti Suzuki's strategy of offering airbags and several other safety features as an option.
Honda would like to enter the mass market with an affordable compact hatchback. They currently offer Brio, Amaze, City, Mobilio, and CR-V models. The City sedan is doing exceptionally well in terms of sales.
DriveSpark Thinks! Something's cooking at the Honda garage - stay tuned!