Honda in India

Honda has always been the aspirational brand of the upper middle class in India. Honda Owners are always considered as those who have a class above the middle class in India. I still remember, in the early 2000 s, if someone owned a Honda City they were always looked up on by all in the society. The Honda Accord and the Honda CR-V were a class apart. 

Then came the Civic which took the D Segment by a storm. Radical styling, Cockpit like interiors and gem of an engine in 1.8L i-VTECH. The car was equipped with gadgetry much ahead of its time just as the looks as the looks suggested. Futuristic was one word to describe it. While on the other side, the City remained low on features, but zoomed up to the top on two pillars, Honda's brand name and the finest 1.5L i-VTECH engines.

By then, Honda had also moved into the small car space with the Brio Hatch. Cute car, fine 1.2L engine. It had come to make up for what the Jazz couldn't do. But the times had changed till then. It was the time when the Petrol Diesel Price gap widened and suddenly demand for Diesel Engines Surged. Maruti and Hyundai were the first to catch up with this change. Then came in the beloved 1.3 L Multi Jet from the FIAT which became the heart of Maruti, FIAT, Tata and Chevrolet.

Honda however was too adamant to realize this change and by the time they did, they had lost share in every segment.City was beaten by Verna, Civic by Altis and Elantra, Accord by the Passat and ofcourse the Brio by the Swift and i20. Honda gradually started to focus more on the mass segment cars. A diesel engine was brought in the face of Amaze followed by the new City and now the new Jazz.

In this transition however, Honda known as a premium manufacturer became a follower to the market demands. It struggled to develop a Diesel engine, offered the lowest equipment in its cars and ended up discontinuing it pillars the Civic and the Accord. 

Today no doubt the City and Amaze are scorching the sales charts but they are constantly threatened by Hyundai and VW. Honda has almost exited from the luxury space and is playing the number game. 

I believe in Honda still lies the quality of being a market leader, a premium brand an aspirational car. Hope Honda realizes it and gets back to the position it used to hold.

Hatchbacks, Cross Overs & More..

The most beloved segment of all car buyers in India is the Hatchback segment. India is the home of small cars and every home in India which owns a car, owns a Hatchback. According to figures, the hatchbacks comprise of 60% of cars sold in India. Hence, every car maker present in the Indian Market has a presence in this segment.

However, the past decade has seen a lot of changes in this Segment of cars. Upto the millennium era, it was majorly ruled by the A Segment cars which ranged between Rs. 1.8 lacs to Rs. 3.5 lacs. where major share was held by Maruti Suzuki with the likes of 800, Zen and the Wagon R.

As the market opened many new players joined in like Hyundai, Tata Motors, Fiat, Daewoo, Toyota, Nissan, Ford, Honda, Chevrolet, Skoda, and the recent entrants like Datsun.
The hatchback market not only saw new players coming but also emergence of various sub segments at various price points which ranged from Rs. 1 lac, the Tata Nano to the Rs. 25 Lac plus, Mercedes A class.

Today Hatchbacks have become just a form of design than being a term to explain economical cars. Hatchbacks today offer all the goodies that are seen on Sedans in the Rs. 10 lac plus bracket. This is majorly because the infrastructure in India is still conducive to low cost of ownership, low maintenance and ease of maneuverability. These are prime consideration factors in choosing a hatchback rather than merely a small engine.

The i20 Elite is the King of the segment in terms of interior space and on board features and gadgetry. While the VW Polo GT TSI and the Punto T Jet are hot hatches targeted at young buyers who are ready to pay the extra premium for performance. Another segment coming up these days is that of the Cross overs. The Polo Cross, Etios Cross, Aventurra and the latest i20 Active have given a new image to hatchbacks that offer bigger tyres, greater ground clearance, and better handling for tough roads.

Another segment that got added due to Government regulations was that of the Compact Sedans which was pioneered by Tata Motors with the Indigo CS. This concept was later adopted by Mahindra with the Verito Vibe, Hyundai Xcent, Maruti D Zire and the Honda Amaze. A compact sedan essentially meant a boot fitted on to a hatchback, yet maintaining the overall length to Sub 4 Meters to avail the excise benefit.

Automakers are well aware of the fact that to eat a larger piece of the pie named Market Share, constant innovation is needed to break the barriers and look at things with a different perspective. The success of i20 Elite, Etios Cross and the Polo GT TSI reaffirms the fact that there are buyers for all kinds of hatchbacks in India and that pricing is not a limiter in purchase decisions.

Young Indian doesn’t want to compromise on build quality; features, safety, looks, ride quality and drivability in their cars yet want enough practicality for it to be of everyday use, and a hatchback just fits in right. We shall wait to see what more unfolds in this segment.