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[Can Honda cars resurrect its fortune with the premium shift?](
As the Honda Cars fixes its entry-point with Amaze (price starts at Rs 6 lakh) and has no play in the market below this, the carmaker is much in-line with changing market dynamics which are moving up, so rapidly. The average car price in the country has moved from Rs 5-lakh to Rs 7.6-lakh in the past decade. However, limited product lineup and almost absent from more than 70 percent of the market including the fast proliferating compact SUV, will Honda Cars revive itself with a strategy restricted to the premium segment, Nabeel A Khan finds out.
New Delhi: Japanese carmaker Honda Cars India (HCIL) emerged as the third-largest carmaker in July 2014 with monthly volumes rising 40 percent to 15,709 units, overtaking homegrown player Mahindra & Mahindra. It had hit the best performance when itâs market share in the Indian passenger vehicle almost screeching 7 percent in April-June FYâ15.
It was achieved by imitating segment leaders like Maruti Suzuki India and Hyundai Motor who had narrowly and keenly focused on the mass market. The carmakerâs short-lived success can largely be credited to a shift in focus to the mass market from the premium segments that started with the debut of Brio hatchback launch in September 2011, but ideally gained customerâs fancy with compact sedan Amaze- itâs diesel model made specifically for India with an all-new 1.5-litre i-DTEC engine â introduced in April 2013.
Soon after this, City and the Amaze witnessed strong successes with monthly volumes in the upward range of 7,000 units. Thereafter the company launched Mobilio MPV in 2014, which had the same City diesel engine and then came also in the BR-V, yet another attempt to woo the value proposition of money-conscious Indian consumer.
Even as the volumes were up, but, Honda brand loyals who had engraved a premium and class image of the carmaker with the almost impeccable popularity of Honda City sedan could not take the value for money products like Mobilio, BR-V and Amaze. Industry experts and buyers saw this, especially the change in the material, design, and overall quality, very much unlike any of the previous Hondaâs sold in the country.
Eventually, Honda Carsâ market share in FYâ2020 slipped to 3.7 percent from 5.5 percent in FYâ2019, and in June the carmaker was one of the worst performers as its dispatches fell by 87 percent to 1,398 units and market share in the first quarter of the FYâ2021 stood at a dismal 1.1 percent.
However, Gaku Nakanishi, President & CEO of Honda Cars India says the decline was mainly due to the nonavailability of BS-VI compliant vehicles. âWe wanted to start BS-VI production by March-end but due to lockdown it was completely stopped and we could resume production only after June 15,â he said. Indian government leapfrogged from BS-IV to BS-VI from April 1, 2020.
The carmaker has phased out Mobilio, BR-V, probably with the shortest stint by any production in the Indian market. While Brio, first, launched in September 2011 and got its last update in 2016 was also phased out after dismal sales performance.
After a few years of abortive attempts to gain a foothold in the mass segment, the Japanese carmaker is clear and committed to staying away from any volume aspirations by mending its strategy by reversing it to the time of glory it achieved with Honda City.
âWe will continue to provide premium products and premium brand image to the customers in India.â Gaku Nakanishi told ETAuto in an interview. The company will not bring any new product below Amaze which has a starting price of about Rs 6 lakh.
This comes in line with another Japanese carmaker Toyotaâs last yearâs plans to exit entry-level and mass segment products like Etios Liva hatchback, Etios sedan and Etios Cross âwith the implementation of BS-VI.
âThe City is what makes the Honda brand in India. No other product has been such an ideal combination of their legendary edgy styling, latest technology, features and the right price. So products with feature-rich premium comfort and performance is the only way the Honda badge can find its own space in the Indian market,â says Avik Chattopadhyaya, an industry observer and marketing, and branding expert.
Rightly so, to proclaim the premiumness the carmaker is not offering any strip down variants on its products. Started with WR-V, now the 5th generation Honda City also has only fully-feature loaded variants available in the Indian market. While the 4th generation Honda City will continue to exist in the market, making it an exceptional event by any carmaker in India.
With the increase in the cost of vehicles with the introduction of BS-VI and the massive success of two new entrants, Kia and MG with over Rs 10 lakh price points give an assurance to Hondaâs strategy to move to premium. Also, the average price of a passenger vehicle in India has surged from about Rs 5 lakh in 2010 to Rs 7.6 lakh in 2019. The companyâs Amaze and Jazz may fit well within the new average price. The carmaker has slatted its new premium hatchback Jazz for festive launch.
According to ETAuto research, cars priced between Rs 5-10 lakh contributed about 32 percent 10 years ago and now contributes 57 percent to the total PV volume in India. The contribution of cars priced above Rs 10 lakh jumped three-fold in the last 10 years to 15 percent of the total sales.
Interestingly, despite all the slowdown in the automobile market, the performance of compact SUVs has remained robust. SUVâs share of about 8 percent ten years ago has now jumped to 28 percent, but this segment has remained the weakest point for Honda in India even though a tiny share of SUV buyers might have come to its fold via WR-V crossover.
The other missing point with Honda is its extremely tiny product portfolio of three products â WR-V, City and Amaze catering in the mainstream market. Civic and CR-V have a very tiny market in India.
It has virtually no products to cater to more than 70 percent of the Indian passenger vehicle market. The carmaker needs to seriously think of expanding the product portfolio to resurrect the sliding market presence in the country as its best selling car Honda City also lost the crown to Maruti Ciaz and the Hyundai Verna.
In a Post Covid Market
The other major question comes with Covid-19 forcing people to conserve every penny and probably downgrade to a lower segment, forcing carmakers to deal with this new change.
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[What Iâd Buy With $1 Million, Chapter 3: Our Editors Fill Their Dream-Car Garages](
If itâs Monday, itâs time for chapter three of our weekly Automobile âMillion Dollar Challenge,â wherein one of our staffers each week creates their personal list of dream cars. The rules are simple: What would you buy if you were today handed $1 million and commanded to spend it on nothing but filling your dream garage with automobiles? Weâll each select at least five of our lifelong dream cars, rather than copping out and blowing the entire imaginary wad on a single million-dollar car, because what fun would that be? However, not every car must be a six-figure collectorâs item, either. This week, itâs Automobile social-media guru Billy Rehbockâs turn to dream:
Ready for some #MondayMotivation? Iâm somewhat notorious at our office for having way too many Hot Wheels cars parked on either side of my computer, so naturally I tried to cast a wide net here to include as many of my favorite cars as possible when imagining my dream garage.
I own a 2012 Volkswagen GTI, so practicality is not the objective of my selections. I chose cars that Iâve either loved driving during my time at Automobile, or ones I want to cross off my list in general. My dad raised me as a Volkswagen enthusiast, so I made sure to pick out at least one ride from VW, Audi, and Porscheâbut I still dream of cars from other marques, too.
1988-1995 Volkswagen Corrado VR6, $10,000-$16,000
This is a sentimental pick for my dream garage. Growing up, my dad talked about his former Corrado VR6 with immense fondness. His car was painted Tornado Red and had sweet BBS wheels; Iâve never driven a Corrado, but contemporary reviews raved about its handling and potent engine. It also brought active-aero spoilers into the mainstream, and it was the flagship vehicle for Volkswagenâs innovative narrow-angle VR6 engine. These cars are still incredibly affordable, but they are in rare supply due to being expensive when new and still pricey to maintain.
2003-2004 Volkswagen Phaeton W12, $15,000-$36,000
Volkswagenâs one-time flagship sedan captured my heart early in life; I loved the fact VW built a car with an opulent interior but hid it away beneath jumbo-Passat styling. The Phaetonâs W-12 engine is a mechanical marvel, producing a silky-smooth 420 horsepower. The car is loaded with luxury equipment that took a decade and a half to reach the mainstream, like heated, cooled, ventilated, and massaging seats.
The VW Phaeton is still an elegant car to drive, and after driving a barn-find, lightly modified 2004 Phaeton W12, Iâve never wanted one more. Like the Corrado, these are pretty affordable to purchase today but upkeep can be a nightmare, especially due to the engineâs complexity and the carâs air suspension.
2003-2004 Volkswagen Golf R32, $15,000-$40,000
This is arguably the greatest Golf of all time, so itâs right at home in any dream garage. Powered by a naturally aspirated 3.2-liter narrow-angle V-6 engine, the R32 delivers 240 hp, all-wheel drive, and the choice of a manual transmission or a dual-clutch gearbox.
The carâs boxy form gave it a bit of a rally-car aesthetic, and the Golf R32 holds its value incredibly well: one example sold recently for a whopping $44,000. The stunning multi-spoke wheels give this special variant of the Mk4-generation Golf a more grounded stance, and an R32 painted Deep Blue Pearl would make a fantastic inclusion to what is shaping up to be an impressive VW âyoung-timerâ dream-garage collection.
2001-2005 Renault Sport Clio V6, $30,000-$70,000
Yes, such a car really does exist: a mid-engine, rear-wheel drive, manual-transmission-equipped, 252-hp production hot-hatch with two seats. Renault built 1,309 examples of the Clio V6 Phase 2 between 2003-05, making it a rare and desirable mega hatch. (Renault built Phase 1 variants during the entire span of 2001-2005.) European car magazines at the time named it an instant classic, and Iâd absolutely reserve $70,000 just to be sure I had enough cash to purchase and import one to compliment my Golf R32.
We donât spend a lot of time at Automobile talking about mid-century American cars, but thereâs just something about a 1957 Ford Thunderbird in Starmist Blue with a Colonial White roof.
Fordâs Corvette competitorâs design was inspired by a one-off 1952 Ferrari Barchetta given to Henry Ford II by Enzo Ferrari himself. As someone whoâs always preferred European touring cars to American muscle, this Ford is a fitting dream-garage inclusion for my only American-car pick. Fortunately, 1957 Thunderbirds arenât too expensive, so maybe Iâll be able to add one of these to my real garage at some point.
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[2013 Mustang Shelby GT500: Cost, Facts, And Performance Overview](
The classic muscle aesthetic of the â13 Shelby makes it uniquely attractive and its enhanced handling makes it a practical choice.
The 2013 Ford Mustang Shelby can easily be considered one of the favorite model years for the classic muscle car. With 662-hp and 631 lb-ft of torque, it has one of the most powerful V8 engines ever released in an American production car. Ford outfitted the GT500 to max out horsepower, adding a new supercharger and driveshaft along with updated camshafts, clutch, and transmission.
Even after the release of the 2020 GT500, the 2013 model remains a popular edition for collectors and performance enthusiasts. A total of 4,885 were produced; Upon its release, its MSRP started at $54,995. The classic muscle aesthetic of the â13 Shelby makes it uniquely attractive and its enhanced handling makes it a practical choice.
Initial tests of the â13 GT500 revealed its solid handling, rapid reactivity, and performance gains over previous models. In the front, independent MacPherson struts come standard with a 33.2mm x 5.0mm tubular stabilizer, twin tube dampers, and optional Bilstein monotube adjustable dampers. The rear suspension consists of a 3-link solid axle with coil springs and a panhard rod. A 23mm stabilizer bar and Bilstein adjustable monotube dampers are available for the rear as well.
Plenty of stopping power is needed for this torque monster; Ford equips the car with Brembo vented discs in the front and rear, 15â and 13.8â. The front and rear employ six-piston and single-piston aluminum calipers, respectively. 10-spoke forged aluminum wheels with standard Goodyear Eagle F1 SuperCar tires grip the road with ease.
All-speed traction control is combined with quad-sensor ABS for a 60-0mph braking distance of approximately 101â. âThe break-away characteristics under power are quite smooth and controllable, as long as the driver is reasonably judicious with the throttleâ, commented MotorTrendâs Andrew Bornhop.
5.8L V8 SVT Engine
Under the hood of the â13 Shelby is a 90° supercharged DOHC V8. The 351cid engine is an aluminum block with a forged-steel crankshaft and connecting rods.  A pleasant rumble emerges from the 3.5â³ stainless steel H-pipe exhaust. A total of 662 horsepower (at 6500 rpm) and 631 lb-ft of torque (at 4000rpm) can be harnessed from the 5.8L V8.
This power plant is similar to the 5.4L V8 used in â11-â12 models with the addition of piston oil squirters, an aluminum sump and a larger oil pump. The block features Fordâs unique plasma transfer wire arc technology as opposed to traditional cylinder liners.
Ford engineers also upgraded cooling in the form of a three-row intercooler, larger fans and additional 3mm coolant routes. The 5.8L V8 has a bore of 93.5mm, increased 3â from the previous model for a bore x stroke of 3.68â x 4.17â. A 2.3L Roots-type Eaton supercharger provides a maximum of 14.0psi boost and pushes 2,300cm³ of air per rotation.
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