In the most recent turn of events, Honda has officially axed the plans to launch its mid size SUV, the HR-V in India, in its final stages. The plans to launch the new model was slated close to Diwali celebrations and project was under rapid development for scaling and production of HR-V through grass route localisation method. The leaks suggest the plans were called off due to less than 30 percent of localisation was made possible inspite of extensive research and procurements. The brand was not able to extend its resources for development and production of the HR-V in domestic market. The logistics aren’t allowing the brand to offer HR-V under aggressive price point in already cut throat competitive segment.
The brand planned to launch HR-V in the Indian market back in 2013, post the unveil and launch in US and Japan markets, but was unable to provide the needful at a feasible price point in India, resulting in launch of deconstructed features BR-V launch in India. However, with the rapid production and development undertaking in the Indian automobile segment in India, the brand pulled plug of BR_V with the plans to introduce the facelift second generation HR-V in India by the middle of third quarter of 2019.
Nearly 70 percent of parts procurement and research was already carried out by the company at the test facility, but it is believed that the entry of brands like Kia Seltos and MG Hector made it even more difficult for the brand to provide facilities, and resources in the segment. The brand realises the availability and selection of features now offered to Indian customers and simply cannot rely anymore on brand image or face value. The company has now shifted its attention with the development and launch of 5th generation Honda City which is slated to be introduced in 2020.