Honda was planning to launch the HR-V in India but now the SUV’s launch has been called off.
After multiple attempts at bringing its new midsize SUV – the Honda HR-V in India, the carmaker has decided to axe the entire project altogether. The 4200 mm long SUV, built on a monocoque chassis, is currently on sale in some key markets as the Honda Vezel. The midsize SUV, would have competed against the Kia Seltos, MG Hector, Hyundai Creta and the Mahindra XUV500 with a 1.6-litre turbocharged diesel engine and a 1.8-litre naturally aspirated petrol powertrain.
Honda had conducted a feasibility study on the HR-V in the year 2013, right after the model was launched in Japan and the USA. Apparently, the project did not tick all the boxes given the high level of import content in the model. It was in 2017 that the company had concrete plans to assemble the HR-V together with the new CR-V and the Civic at its Greater Noida plant. Honda also kept up investment into new jigs and fixtures at the 1,20,000-units-per-annum capacity factory over the last two years.
The carmaker had conducted two trial productions of the SUV, one in 2018 and the other earlier this year and rolled out around 4-5 prototypes. Honda was aiming to complete the final trial production of the HR-V in September before aiming for mass production in December of 2019. However, the arrival of MG Motor and Kia in India rattled plans for the brand which was already busy with procuring around 70% of the components for the HR-V from Japan, China and Thailand.
Honda wanted to keep the costs in check and achieve maximum localisation on the new model. It is believed that the local suppliers were contacted for batteries, mirrors, seats, tyres and handles, to obtain around 30% localisation (similar to the Civic) but the ongoing slowdown in the industry took a toll on its volume confirmation to its vendors.
The carmaker might just focus on the launch of the 5th-generation Honda City, set for an introduction in 2020.
Honda HR-V India Launch
– Honda has decided to axe the entire project altogether
– Would have competed against the Kia Seltos, MG Hector, Hyundai Creta and Mahindra XUV500
– Currently on sale in some key markets as the Honda Vezel
Source – AutocarIndia.com