Honda to enter $3k segment, too
There isn't a major carmaker in the world today that wouldn't want a piece of the action in India's rapidly growing car market, namely its compact car segment. One car company that's favorably positioned to capitalize on the Indian market is Honda, which is already one of the country's largest manufacturers of cars and motorbikes.
Honda chairman Satoshi Aoki has revealed that there are plans to launch a premium small car in India by 2009 as well as an ultra-cheap minicar that would cost under US $3,000. Originally under consideration were the small Fit (pictured above) and City models, but these cost upwards of $9,000, three-times as much as Honda was aiming for its new budget model.
Aoki admits it would be difficult to build a car that retains 'Honda characteristics' for that kind of money and that the original plans have now been shelved. "Personally I would be surprised to see such a vehicle," Aoki revealed. This now puts doubt on claims from Renault-Nissan and India's Tata Motors that they'll introduce their own sub-$3,000 cars by the end of the decade.
[Source: India Times]
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Reader Comments (Page 1 of 3)
geo.stewart 11:55AM (7/02/2007)
so, 20yrs ago, a little company comes in with a $5000 car that forfeited all sense of quality and safety. That car was the Yugo.
Having talked to friends from India, I'm not sure I would want to give up that safety on India's roads. And at $3000 in today's dollars, how much worse would the car have to be than the Yugo???
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PuffyC 12:05PM (7/02/2007)
Amen to that - Indian drivers are the worst. Of course seeing what many drive today I can't imagine these low dollar Honda's being much worse.
Bill Wilson 12:16AM (7/09/2007)
A friend of mine had a Yugo, put over 250,000 miles on it. They would last if you took care of them
rv 12:11PM (7/02/2007)
Seems about how much they should charge for some of their McCars in the first place. Especially the phony-AWD C-"RV", Excrement and the Fit...
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rob 1:15PM (7/02/2007)
go troll somewhere else idiot
Kevin 1:13AM (7/09/2007)
Sounds like from your name you didn't do your homework to tow 4 wheels on the ground behind your RV and blaming the CRV for it too bad!!! Honda's last forever....
Raj Aryan 2:04PM (7/02/2007)
The whole challenge is to come up with safe, decent and quality small car under Rs. 1 Lakh (approx. US$2700). Whoever can do it first will be a huge winner. Tata is alreay ahead in this game.
It's a whole new world of automobile, not understood by most ...
I personally don't think it can be done for Rs. 1 Lakh, more like Rs. 2 lakh.
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Brent 2:40PM (7/02/2007)
Maybe they can joint venture with Brilliance to create such a vehicle.
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Raj Aryan 3:51PM (7/02/2007)
As i said, most don't get it!
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calebe 7:35AM (7/03/2007)
It isnt about how much the car costs to build, really as how much the labor costs to build it. It only costs VW about 2500 Dollars U.S. to build a Golf. The rest of the price is hourly wages, pension, health costs and that huge profit for the upper management.
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Mikeeeeeeee 9:50AM (7/03/2007)
Your a moron. Maybe you can go and work for $.13 per hour to help keep the cost down.
calebe 12:56PM (7/03/2007)
LOL A June 17 Deutsche Bank report pegged production cost for the Logan at $1,089 per car, less than half the estimated $2,468 for an equivalent Western vehicle like a Volkswagen Golf.
http://www.businessweek.com/bwdaily/dnflash/jul2005/nf20050719_4953_db089.htm
Bishop Pretty 10:12PM (7/08/2007)
I'm disappointed in your ignorance on the subject of labor costs in the automotive industry, Calebe. I can speak only of DaimlerChrysler (more specifically, the Dodge Ram pick-up), as I spent many years as a representative within their structure. Chrysler builds and sells Dodge Ram pick-ups costing anywhere from $14,000 to $50,000, while the cost of labor to build these vehicles is about $1900 (regardless of MSRP). Where the other $12,100 to $48,100 goes I do not know ('tis not part of my job to know). Next time you choose to insert your foot into your mouth, my friend, I suggest you research what it is that you're eating.
Doug 11:07PM (7/08/2007)
Who doesn't know what they are talking about? They (1,060 workers) produce 175,000 cars a year, and make $240 plus some meal coupons a week. Works out to about $76 per car for labor. Far short of what US workers get. By the way, did they ever find Jimmy Hoffa?
calebe 11:11AM (7/09/2007)
Mike and Bishop pretty missed the point all together.
Doug 11:17PM (7/08/2007)
$240 per week divided by even 60 hours is still $4.00 per hour, not $0.13. Glad to see our Public Education system did such a good job for you, Mikeeeeeeeeeeee! (I guess e's were on sale at WalMart, huh?
Pan_theFrog 6:05PM (7/03/2007)
So let me see if I understand this:
1) Honda is a company that MIGHT get into the $3k market.
2) The chairman says they have plans, but he thinks the vehical will not be like other Honda cars.
Can we say "Duh"? It's like Alienware computers saying that they are going to get into the discount computer market, but the cheap computers will not be like the normal cutting edge computer Alienware makes. I am sure that the car will be the best Honda can make...for under $3k, but I am not expecting it to last 100k miles, or even 80k. I expect it just to be a way to get a new driver hooked on having a car, so then he has to buy something better for his next car.
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glenn 8:42PM (7/08/2007)
Did I read this right? Does the headline say that Honda is working on a sub $3000 car and then the story goes on to say that Honda has "shelved" the idea? Did I miss something or is this a total non-story?
val 8:38PM (7/08/2007)
you grt what you pay for. cheep.
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mcconnellval@aol.com 8:40PM (7/08/2007)
you get what you pay for.cheep junk.
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