Honda will be offering the next generation CR-V with localised content which will help reduce taxes and keep the pricing of the car competitive.
Honda has been selling cars across a variety of segments in the Indian market. The Brio and Amaze are aimed at mass-market segments while the City serves the C-segment. Moving slightly up, we have the Mobilio and BR-V that are slotted in the UV segment. Move further up and you have the CR-V which is a premium SUV brought down to India via the CBU route.
The Honda CR-V competes in the higher-end of the SUV segment and while the earlier generation of the vehicle was quite popular in our market, the new one has failed to make a mark owing to its high price which is due to the fact that the car is levied with a lot of duties and taxes.
The next generation Honda CR-V is going to be due in India in the next couple of years and this time around, the Japanese automaker will be doing a significant amount of localisation on the vehicle. It has been learnt that localisation level will be as high as 60-65%. Thanks to this, duties on the car will be reduced too.
All of this will result in the prices of the Honda CR-V being more attractive and if slotted in the market well, it will help Honda rake in a lot of numbers. The current generation CR-V competes with the Hyundai Santa Fe while the Toyota Fortuner and Ford Endeavour also fall in the same price bracket.
Honda Plans To Localise CR-V
– The new CR-V will have localised content of 60-65%
– The new CR-V, being a CKD, will attract lower duties
– Honda will be able to price the new CR-V more attractively