Honda may defer launch of Jazz to next year

Japanese auto major Honda islikely to start the fresh roll out of its 'discontinued' hatchback vehicle Jazz in Indian market next year.

'Last year we announced that within this fiscal year we will come up with Mobilio and Jazz. But the great demand (for other models) is exceeding our expectations. So we started the second shift of our second plant,' Hironori Kanayama, President and CEO, Honda Cars India, told reporters here today.

'The demand seems to be so strong, so the launch of the Jazz is slightly adjusted. That's what we think. We have not yet taken a decision (on the exact time of launch). We anticipate the launch of Jazz any time next year,' he said.

Honda had stopped production of Jazz last year. The vehicle was launched in India in 2009 with a hefty price tag of over ₹ 7 lakh which was slashed by ₹ 1.6 lakh later.

Kanayama said the company plans to add another 100 dealers by the end of March 2016 to the existing 200 dealers.

He inaugurated the 200th dealer-Metro Honda here today.

'By March 2016, we will have 300 dealerships all over the country. Of the total 200 dealers we have now, 75 per cent are in tier-II and tier-III cities and towns. The network expansion is also an essential element in our larger vision of being the most trusted company in the country,' he said.

To a query, he said the company aims to achieve sales target of 3 lakh vehicles and accordingly, production capacity will be increased from the current 2.4 lakh per annum.

HCIL has two manufacturing facilities at UP's Greater Noida and Tapukara in Rajasthan's Alwar district.

Backed by strong demand for cars like Honda City, Honda Amaze and the recently launched Honda Mobilio, HCIL achieved over 1 lakh sales in the current fiscal, registering an overall growth of 43 per cent during April?October 2014 with 1,01,442 units as against 70,831 units in the same period last year.

The company hopes to achieve a double-digit growth in sales in the current year, he added.