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MACHINIST - Honda launches its small car Brio in India with 80% localisation

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Home arrow Automotive arrow Honda launches its small car Brio in India with 80% localisation

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Honda launches its small car Brio in India with 80% localisation
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Written by Anand   
Wednesday, 28 September 2011

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New Delhi: Honda Siel Cars India Ltd launched its much-awaited small car, the Honda Brio in the Indian market. Honda Brio is being manufactured at HSCI’s facility in Greater Noida, U.P. with localisation level of more than 80%. The localisation level is expected to reach 90 percent soon.

"We have been able to launch the Brio at a competitive price due to our concerted efforts to control costs, maximize production efficiencies and minimize impact of currency fluctuations. And we have achieved this through pure localization – localization of critical components, using local suppliers, local materials, local machines and dies, by localized drawings and our Indian associates," said Takashi Nagai, President and CEO, Honda Siel Cars India Ltd.

Honda is targeting a  Rs 112 crore export turnover for components from India for the current fiscal year. The company has already begun exporting components and kits to Thailand, Indonesia and Malaysia from its Tapukara, Rajasthan factory. Last year, the company exported car-components worth Rs 11.30 crore from the country, a senior company official said.

Senior Vice-president for Sales & Marketing, Jnaneswar Sen, said that India delivers quality products at low prices, so the company is looking at it as a components-sourcing hub. Sourcing from India offers additional advantages such as de-risking from Japan, which was hit by a devastating earthquakes and tsunami early March, and a hedge against adverse currency movements, he said.

Honda says that the Brio has been designed for India and Indian consumers. Indian engineers were involved for the first time in developing a Honda car. They assisted in designing and developing many parts according to Indian preferences

The Brio has a four cylinder 1.2-litre i-VTEC engine that delivers maximum output of 88 PS @ 6000 rpm and Torque of 109 Nm (11.2 kg-m) @ 4600 rpm, while giving a fuel economy of 18.4 km/l, as per test data.

The Honda Brio will be available in four variants, with prices ranging from Rs. 3.95 lacs to Rs. 5.10 Lacs. Bookings for the Honda Brio will start immediately at the company’s vast distribution network of 135 authorised dealership facilities in 83 cities across the country. HSCI has already expanded and strengthened its dealer network in preparation for the launch of the Brio. This network is likely to go up to 143 facilities in 91 cities by the end of the current financial year.

For the past 21 months Honda has been trying to work out a production plan to counter the effect from fluctuations of economy. Honda recently slashed prices of Jazz and City leading to higher demand.

HSCI plans to export the Brio to Nepal, Bangladesh and Sri Lanka very shortly. The car will be available in Nepal next month

Last Updated ( Thursday, 29 September 2011 )
 
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