Honda CR-V assembled in India to remain competitive

2013 detroit auto show honda cr vHonda, which is ready to launch its fourth generation CR-V in India, has decided to assemble the vehicle in its Noida plant to keep the prices competitive in the market.

According to reports, the Japanese automaker by assembling the vehicle in India wants to avail itself of the lower taxes in India.It has also decided to lower the prices because the vehicle will no longer be imported from Japan. The new Honda CR-V is likely to retain the 2.0 litre and 2.4 litre petrol engines options like its older version.

The “Urban SUV Concept” made its debut during press previews at the Auto Show in Detroit. Honda Motor Co. plans to launch a small SUV based on that concept vehicle in Japan by the end of the year and in the US in 2014.

The concept SUV is 9 inches shorter than the CR-V, and hidden rear door handles give it a smooth, coupe-like presence. When it goes on sale in the US it is expected to be priced below the existing CR-V, which starts around $22,700 for a 2013 model.

“We believe there is a good market potential for this vehicle,” Tetsuo Iwamura, president and chief operating officer of Honda’s North American Regional Operations, said in an interview with reporters at the show.

Honda’s new SUV is part of a segment of smaller vehicles that are becoming more readily available in the US market with higher-end features such as heated seats and navigation, noted IHS Automotive analyst Rebecca Lindland. Other upcoming small SUVs, such as the Toyota RAV4, fit the bill as well.

Honda is opening a plant near Celaya, Guanajuato, north of Mexico City. It plans to build the new SUV there as well as the Fit. With the addition of the plant, Honda said about 95 percent of its production for North America will be in North America, up from its current level of about 90 percent.

“That is a symbol of the kind of localization that we’ve done in North America,” Honda President and CEO Takanobu Ito said in an interview with reporters at the show.