It's that time of the year when the financial year 2023-24 has just begun. A lot of people plan for new cars and a lot of things changed in the Auto industry as well. Prices are hiked, new norms kick in, and a lot of models left us for good. In those cars, Honda has 3 cars that bid farewell to the market. The Honda City 4th Gen, WRV, and the Jazz. But a new Honda SUV is just around the corner.
Yes! Honda is coming with a new compact SUV in 2023 that will lock horns directly with the Hyundai Creta for a chunk of its pie. But why is this the perfect time for its launch for the Japanese Car Giant? Let us put out 5 points.
1. The SUV Space Is Hot
Moving past the barriers of higher price points, the compact SUV space is sizzling hot at the moment. Brands are head over heels in trying to lure the next buyer toward their showroom. Hyundai Creta, in this segment, is the undisputed king. But so is Honda, in the sedan space with its Honda City. The two arch-rivals are now ready to face off in the SUV segment as well. This would be a perfect new battleground for both after the sedan tussle.
2. Just 2 Honda Cars For Sale At The Moment
April 2023 left Honda with just 2 cars in the Honda's showrooms for sale. The 2023 Honda City and the Honda Amaze. It needs more cars under its roof for a holistic overall portfolio. Selling just sedans will isolate the carmaker in other segments, which a prestigious maker like Honda would not prefer.
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3. Honda Elevate SUV 2023- A Sales Booster
Currently, Honda is at the 8th spot in terms of sales in February 2023. This is very much due to the absence of the Honda from the hatchback and the SUV segment. Plus, being placed at the bottom spot in sales is not a good position for a brand of this stature. It will look up to the new 2023 SUV to boost sales for the company.
4. Worried Dealerships
Discontinuation of 3 cars at the same time would have sent jitters in dealerships across the country. They have their doubts in mind, as it is well understood that to maintain decent sales numbers, a bigger portfolio in all other segments is a must. A Creta rival is exactly what the Japanese car maker needs at the moment. Also exactly what the dealerships would want.
5. A New Creta Alternative In the Market
While the Creta is selling like hotcakes, it also means a lot of them will be out on the roads. There is also a segment of buyers looking for something different. The new SUV from Honda will be an anticipated launch from prospective buyers' viewpoint. It will offer a fresh nascent feel again to the segment.
VERDICT- This is the perfect time for Honda to move into the compact SUV segment. A shrinking portfolio and the hot space that the SUVs are in right now make the environment quite favorable for a new Creta rival. And what better than the already trusted premium brand like Honda?
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