Honda Jazz to come with 90% localisation

Honda has increased the localisation levels from 70 per cent seen on the previous generation Jazz to 90 per cent on the all-new model set to launch in July.

The past two years have been extremely crucial for Honda Cars India with the automaker witnessing an 180-degree turn in sales. The arrival of the long-awaited Earth Dreams diesel engine and heavily localised products made sure the Japanese manufacturer saw sales catapult starting with the Amaze compact sedan and then followed by the City saloon.

With the new generation Jazz coming this July, the automaker has achieved 90 per cent localisation on the premium hatchback that will help keep the prices competitive. The previous generation Honda Jazz was a sales dud due to plenty of reasons including the lack of a diesel engine and high pricing being one of them. The automaker had achieved 70 percent localisation on the older version that kept the prices at a premium.

The new model though shares a lot of components with the City sedan that has also been extensively localised in the country. Honda will also manufacture the 2015 Jazz at its new Tapukara facility in Rajasthan where the City and Mobilio are currently produced and will also expand the plant to increase production capacity.

Honda will be investing Rs 380 crores on capacity expansion at the Tapukara factory in the 2015-16 fiscal that will take the total installed capacity from the current 1.2 lakh units to 1.8 lakh units by the middle of next year.

The Jazz will be primarily rivalling the Hyundai Elite i20 and is expected to break the Korean hatchback’s success streak in the segment. In addition, the Jazz will face competition from the upcoming Maruti YRA (codename) that is expected to hit the market around the festive season. A starting price of Rs 5 lakh is expected on the new Jazz.