Honda's re-entry into SUV segment in 2023 makes automaker bullish on India biz

Honda Cars India seems confident to put its business here back on growth charts as the Japanese auto major gears up to re-enter the SUV segment next year. Honda does not have a mentionable presence in the SUV segment and currently relies on its sedan models, namely Honda City, Honda City eHEV and the compact sedan, Honda Amaze to bring in profits.

Honda Cars India President and CEO Takuya Tsumura said the company is focusing on making its business healthy again. “We did some restructuring in the last few years and it was a bit of a tough time, but I can now say it is done, the company now has a healthy constitution," he was quoted as saying in a PTI report. He also admitted that the Japanese auto major went through a rough patch in the last three years, as Honda decided to transition towards electric mobility followed by a restructuring process of facilities and operations.

Tsumura added that the restructuring process led to various actions including the closure of a few manufacturing plants across the world, including one factory in India. “I can say that we have bottomed out this year and from now on we are only going to go up," he added further.

Honda is aiming to take advantage of the SUV segment which has now become the largest segment of the country selling over 30 lakh units annually. “The SUV market has grown robustly and now accounts for around 50 per cent of the overall passenger vehicle segment. We are not participating in that segment. We are confident that with the launch of the SUV next year, we will enhance volumes," Tsumura said. He, however, did not divulge any information about the upcoming SUV model.

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