Honda bets big on Indian mkt; to produce 6 new models

Sumantra Barooah, CNBC-TV18

The average lifecycle of a car is increasing in Japan while it's shrinking here. and that's why Japan's second largest carmaker Honda is planning an onslaught of models after its second plant begins operations.

Honda has launched the new Accord to further conslidate its position in the premium car segment and it is simultaneously preparing for a major offensive in the smaller car segments, through its second plant in Rajasthan. The company is trying to emulate its parent company's Suzuka plant which can manufacture six models from different platforms in a single assembly line. This is to meet the demand of the Indian consumer who's changing his or her car every three and a half  to four years.

M Takedagawa, President and CEO, Honda Siel Cars India, said, "That we can implement in our second plant in Rajasthan. That should be able to handle three platforms."

So, how many models on each platform?

Takedagawa said, "One or two per platform. So upto six."

Before rolling out the first of these models towards the end of 2009, the Rajasthan plant will start supplying engine components and stamped body parts to the existing Greater Noida plant from September. Honda's taken ten years to consolidate its position in the segments it is present in, but it plans to boost the pace as it gets into the mainstream segments.