Honda planning to take on Suzuki in India

Honda planning to take on Suzuki in India

Japanese automobile companies are planning to expand their domination in the Indian market. Honda has now said that they are working on plans to expand their operations in India to take on the current market leader Suzuki.

Honda is currently studying developing small cars with engines of less than 1.2 liters to attract more customers to their cars in the Indian market.

Nissan Motor Co. and Tata Motors Ltd. are two other companies which are working on cheaper smaller cars to take on Suzuki in the Indian market.

Koji Endo, a senior analyst at Credit Suisse Group in Tokyo spoke about Indian automobile market: “The key is which non-Indian automaker coming to India can cut costs furthest in order to compete with the local companies.”

Honda currently sells their models including the City, Civic, Accord and CRV in the Indian market. None of these models are catering to the growing middle class in India. The company needs to enter the compact car segment where the sales numbers are huge.