Suzuki's Sale In India Come Under Threat By New Honda Cars

Car manufacturers are changing their tactics and developing new strategies to increase sales in the current climate

. One very important market for cars is India, where the order of the day is small and efficient cars.

One company that is planning to get in on this new market is Honda, who has made the commitment to produce and manufacturer a range of cars specifically for the Indian market. The second largest manufacturer in Japan has not been known for its range of smaller cars, but it has now announced that the next generation of Honda cars will be designed to appeal to this market.

The small car market counts for about 73 percent of the overall car market within India, which is densely populated with motor vehicles. The company already holds a good proportion of the market although not as good as Suzuki who are stated as having a 50 percent share of the country's overall market sales.

Honda had initially been expecting a 20 percent drop when the credit crisis hit, but initial projections have proved to be incorrect and it is hoped that the new small Honda cars will help the company wrestle some of the market back from their Japanese counterparts.

The strategic move by the company might come as a bit of a shock. Although some of Honda cars are quite small with the Jazz and the Civic headlining their smaller range, they are still quite large in comparison to their European counterparts, who have a range of cars like the Mini and the Fiat 500.

If the company wants this new range of Honda cars to compete with the European models or the Suzuki Swift, then not only will some changes need to be made, but also the cost of the cars will have to be modified as they aren't known for being that cheap to purchase. Instead they are considered more of a luxury item, with good economic and efficiency values.

The company have stated that they plan to release the new Honda cars at an affordable price, where it should work out at the same cost as the annual wage for the average worker. Whether or not this will prove to be a success only time will tell. It really will depend on what the consumers are getting for their money and if Honda plan to scale back in certain areas, what areas. Hopefully the company will continue to offer a competitive range of efficient cars that will enrich the car crazy culture of India, but it remains to be seen whether they will be able to overhaul Suzuki's strangle hold on the country's car market.

by: Anna Stenning

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