Honda Motor Co. has introduced its first small car in India to reverse a slump in sales and challenge the dominance of Suzuki Motor Corp. in a country where most people drive hatchbacks.
The Jazz compact hatchback went on sale Wednesday, the automaker said in a statement in New Delhi.
Toyota Motor Corp., Ford Motor Co. and Volkswagen AG are also planning to sell small cars in India, where Suzuki has cornered more than half the market.
Rising disposable income in the world's second-fastest growing major economy may more than double car sales to 3 million annually by 2015, in contrast to declining sales in the United States, Japan and Europe.
"For every manufacturer, it's important to have a presence in the hatchback segment in India," said Puneet Gupta, a New Delhi-based analyst at CSM Worldwide Inc. "With the growing number of middle class here, you can't avoid this segment."
Small cars accounted for 73 percent of all cars sold in the year that ended March 31, according to the Society of Indian Automobile Manufacturers.
New Super Cub soon
Kyodo NewsHonda Motor Co. said Wednesday it will launch a new version of the popular Super Cub scooter in Japan on June 19.
The 110cc Super Cub 110 gets 63.5 km per liter, or about 6 percent better fuel efficiency than its predecessor, the Super Cub 90.
The Super Cub 110 will be priced at ¥249,900, and Honda said it plans to sell 8,000 units annually.
The Super Cub series has been a long-running hit since it debuted in August 1958. As of March 31, about 64 million of the bikes had been produced.