Honda’s Jazz to hit showrooms in June – but at a price

Honda Motors is likely to launch its much-expected compact car early next month. But according to reports, it will carry a price tag of around Rs7 lakh, which is considerably more than its competitors.

According to the company, Jazz will sport an economical 1.2 litre VTEC petrol engine designed for the Indian market, along with ample cabin space and a specially designed suspension to meet Indian road conditions. It is slotted as a premium car that will carry at least 80 per cent of the features present in a larger model.

The Jazz will be considerably more expensive than its nearest rivals like the Skoda Fabia, Ford Fusion, Hyundai i20 and Tata Indigo, and segment leader Maruti's Swift and Dzire models. At this price, the Jazz will also face competition from many sedan models.

The Ford Ikon, Ford Fiesta, as well as Tata Motors brands are all priced under Rs7 lakh, making it a tougher ride for Jazz. "Traditionally, Indians have a tendency to prefer a sedan, if they can afford one. A big car is considered to add to status," an auto industry analyst said.

The Jazz will be Honda's first product in the big-volume compact car segment, and is expected to witness modest sales, considering the price-sensitive nature of Indian market. As Honda Siel's president Masahiro Takedagawa said earlier, "Jazz will trail the City sedan in sales volumes."

Jnaneswar Sen, vice-president, marketing for Honda Siel Cars India (HSCI), is confident about the demand for Jazz. "The car will give a brand as well as a value proposition to customers. The idea is to create an all-new category," he said.

Honda will offer the car with features like airbag, ABS (anti-lock braking system) and G-Con technology, which gives the occupants a survival zone in case of collision.

The Jazz would share the platform and many components with Honda City, making it easier for the company to source the inputs in bulk at competitive prices and keep localisation at over 70 per cent to start with. The City sedan costs Rs7.8-9 lakh (ex-showroom Delhi) and sells around 4,500-5,000 cars in a month.