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Honda to launch new edition of Civic for festive season

Honda to launch new edition of Civic for festive season

New Delhi: In an attempt to revive sales of its sedan Civic, luxury carmaker Honda Siel Cars India is likely to launch an edition of the car during the coming festive season with some “minor changes".

The company, a joint venture between Japanese auto giant Honda and Siel Group, is also ramping up its capacity by up to 50% in the next month to meet the demand during the festival season.

According to sources, the company is planning to come up with a new Civic with minor changes in its looks, such as a new bumper, possibly within the next months.

When contacted, Honda Siel Cars India (HSCI) vice-president (Marketing) Jnaneswar Sen declined to comment.

According to Society of Indian Automobile Manufacturers (SIAM), sales of Civic has been falling rapidly in the recent months with July registering a 45.44% dip. Its sales in the first four months of this fiscal declined by nearly 55% at 1,598 units compared with 3,549 units in the year- ago period.

On expansion of its production capacity, Sen said, “Production is demand driven and it is increasing for our cars. We are planning to ramp up the output by up to 50% from next month."

The company currently produces 5,000 units a month in a single shift at its facility in Greater Noida and would soon start the second shift of operation, he added.

HSCI’s total sales increased by 12% in July, of which about 65% was contributed by its flagship model City, Sen said.

“City’s waiting period has been increased to three weeks now and our objective is to clear this backlog," he added.

The company was developing its second plant at Tapukara in Rajasthan, but had it put on hold last year till 2011.

The new facility was planned to be completed in two phases by 2009 with a total investment of Rs1,000 crore. It has already invested Rs750 crore.

The company has completed construction of the first phase of the plant, where body parts of City and Jazz are being produced.

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