Can Honda Do a Hyundai With the Jazz?

The news of the new Honda Jazz's impending arrival might not be new any more, but that doesn't mean the excitement about this upcoming premium hatchback has waned out even by the slightest measure. There is no denying that this segment is one of the most competitive ones in the Indian market, thanks to cars like the Maruti Suzuki Swift and Hyundai Elite i20. With the new-gen Honda Jazz making a comeback sometime in mid-2015, the segment is set to get lit up all over again, hopefully. I say 'hopefully' because it failed to garner the kind of sales everyone, including Honda, hoped it would.

Honda hasn't shied away from accepting that the Jazz's pricing strategy is what led the car to bomb when it was first launched in 2009. Though the company had done a splendid job with engineering the old Jazz, it was too expensive for a hatchback. The first time around, it cost almost as much as a mid-sized sedan, which the market considered to be of better value. Cutting the hatchback's price did lead to a growth in its demand, but it caused the company to incur losses. The losses led to limited supply, which consequently translated to long waiting lists. One thing progressed to another, and Honda finally pulled the plug on the Jazz in 2013.

Also Read: Hyundai Elite i20 Receives Over 40,000 Bookings in 2 Months

That said, Honda is in no mood to call it quits with the Jazz just yet. I am glad it hasn't, because look at how well the market has finally taken to cars like the Maruti Swift and the Hyundai Elite i20. Though the Swift boasts of an overall competitive pricing, its top-end variant costs about Rs 7 lakh. As far as the Elite i20 is concerned, its high-end variant costs almost Rs 8 lakh. While the former sells about 15,000 - 16,000 units per month, the latter retails an average of 9,000 units every month. You see where I am going with this? The Indian market is finally opening up to the segment, which means there is no dearth of opportunity here.

Now that we are clear about the prospects of the segment, the question remains if the name 'Jazz' has enough equity to make a successful comeback. For both, the car and the company's sake, we hope they get the pricing right this time. If they can that right, the next item on the check-list would be a diesel engine; Honda sorely missed a diesel engine back then but that's sorted too. Considering the dieselisation in the Indian market, Honda brought in diesel variants of the City, Amaze and Mobilio, and all of these cars have been highly successful. If you didn't know already, the new-gen Jazz will get the same engines as the ones that power the Honda City i.e. the 1.5-litre i-VTEC petrol and the 1.5-litre i-DTEC diesel. This will effectively make the upcoming Honda hatchback the most powerful car in its segment. So far, so good, but it remains to be seen if India will welcome the new Jazz with open arms or if the hatchback will suffer the same fate as it did the last time.

Expected launch:  Mid - 2015

Expected Price:  Rs 4.5 lakh - Rs 8 lakh