New Delhi: Honda Motor Company on Friday said that with oil prices rising there was a need to produce cars smaller than Jazz.
The car will be priced close to the new City, and initially manufactured at the company’s plant in Greater Noida.
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The company’s President and CEO, Mr Takeo Fukui, said, “With rising oil prices, mileage of a car will be an important factor in the future. There will be need for a car smaller than Jazz.” He said the company was developing a car that would suit the need for India and the global market.
Honda had earlier said that it would be launching two small cars in the country, which would qualify for the excise duty benefit. To meet the regulations, Honda’s Jazz, which globally comes with a 1.5 litre engine, is expected to be equipped with a 1.2 litre engine in India.
Honda, which operates in India through a joint venture with the Siel Group, on Friday inaugurated its new plant which would mainly manufacture its small car for the Indian market.
The company had announced an initial investment of Rs 1,000 crore for the plant here, which will have an initial capacity of 60,000 units. It also plans to tap the export market for components.