Japanese automobile giant Honda is trying to regain lost ground by launching new products and entering new segments in India. The company on Thursday launched a hybrid version of its popular sedan, the city, in an attempt to succeed in the transition to cleaner fuels. “India is a significant market for us. We have a powerful brand image here, and I want to build on that,” said Takuya Tsumura, the new president and CEO of Honda Motor India, who took office on April 1.

As part of further organisational restructuring, the company has promoted Kunal Behl from Head of Operations and Web Development to Vice President of Marketing and Sales. Tsumura has extensive experience in the Indian market, serving here from 1997 to 2000. Globally, Honda, last June, announced plans to invest $40 billion over the next decade to develop electric vehicles (EVs). By 2030, the company will launch 30 electric vehicles and produce 2 million vehicles a year.

However, Tsumura said the first phase of Honda’s clean mobility journey in India would be a hybrid. “We need to see how the market and competitors react and plan for the future,” he said, adding that the hybrid model has improved fuel efficiency by 40-45 per cent. “I think now is a good time to launch this model with all-time high fuel prices,” he said.

Honda is importing some components for hybrid powertrains from Japan. “But the brand’s commitment to India is high. For Indian customers, it’s a more practical solution than owning a pure electric vehicle. For Volkswagen customers in India, it’s an efficient solution,” Behl said. The vehicle has two self-charging high-efficiency electric motors. The new Urban Hybrid will be powered by Honda’s Intelligent Multi-Mode Drive (or i-MMD) hybrid technology – a combination of an internal combustion engine and two electric motors.

While Honda tried to launch a hybrid in India as early as 12 years ago, the Civic Hybrid immediately failed with an asking price of Rs 2.15 lakh (ex-showroom) as it was imported as a complete unit. “It’s made locally. It makes a huge difference in price to the end consumer,” Behl said. Honda has rationalised costs in 2020 and consolidated its manufacturing operations at a plant in Tapukara, Rajasthan. It ceased production at its older Greater Noida plant in December 2020 and discontinued the Civic and CR-V in India.

Tsumura said he recognised the challenge and planned to fill the void. Honda plans to develop an SUV focused on the Indian market in 2023. “The rise in the popularity of utility vehicles is a global phenomenon. We do not have such an SUV lineup in India. That is why we plan to launch an SUV model next year,” he added.