Honda Could Stall Brio Production. Jazz on Priority


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It was expected and now the moment has come - Production of Hond'a Brio is being stalled to accommodate its ambitious Jazz launch.
Honda Cars India is facing a capacity crunch at both its manufacturing facilities at Tapukara in Rajasthan and Greater Noida. Both factories, which are currently running two shifts, have reached 100 percent capacity and with the launch of the third-generation Jazz around the corner in July in the domestic market, a juggling of production schedules is imminent. Most likely to face production cuts will be the Brio hatchback which, after reaching its peak volumes of 3,000 units per month, is now seeing flagging sales. In March 2015, the car registered sales of 1,642 units but the number was down to a little over 800 in April. A reason cited for its declining fortunes is the lack of a diesel motor and it’s a diesel engine with which the Amaze and fourth-generation City sedans have been front runners for the past many months.
Source: Honda Cars India likely to juggle production to accommodate new Jazz
 
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Re: Honda could stall Brio production - Jazz on priority

If you recollect, Brio was given preference over the Jazz when it was re-launched at a reduced price,
and ultimately Jazz was unplugged from production.

Now Brio is given the same for accommodating Jazz and do not be surprised if this will be the end of Brio since production capacity that Honda has at this time, Honda would rather explore to make Jazz viable than make a less profitable as Brio.
 
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Re: Honda could stall Brio production - Jazz on priority

I am not sure what is the value proposition of Jazz over Amaze and Mobilio. I think Honda has one product too many here. In my opinion, Jazz went out of fashion and the Amaze has received much better acceptibility. What exactly does Jazz do better that Amaze doesnt ? I see another sales failure here, sorry to say this.
 
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Re: Honda could stall Brio production - Jazz on priority

What exactly does Jazz do better that Amaze doesnt ? I see another sales failure here, sorry to say this.
Jazz will be presented to the Indian customers as a premium hatch and will rival Hyundai's Elite i20. Going by the monthly sales figures of Elite, it sure is a segment no manufacturer can ignore.
Honda if sensible in this segment will price it so as to be a Leader in this premium segment, maybe undercutting the Elite pricing, but retaining its Quality!

Amaze is more of a mass market product and is very price sensitive and competitive with too many to choose from.
 
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Re: Honda could stall Brio production - Jazz on priority

I am not sure what is the value proposition of Jazz over Amaze and Mobilio. I think Honda has one product too many here. In my opinion, Jazz went out of fashion and the Amaze has received much better acceptibility. What exactly does Jazz do better that Amaze doesnt ? I see another sales failure here, sorry to say this.
Acechip, What Jazz offers over Amaze?
  • Better interior Space
  • Practicality of a hatchback - especially if coupled with magic-seats
  • More features - ACC, Reverse camera, CVT box option with paddle shifters
  • Better looking and better quality interiors - comparable to City
Let me give you a brief comparo.
  • Jazz is targeted at the urban youth falling in 25-35 yrs age range VS Amaze at a small family who cannot afford a bigger sedan, say City.
  • Jazz is a sporty (looking) premium hatchback like the i20 VS Amaze is a family oriented economy sedan.
  • Jazz is for the customers who look for a premium car but don't want a City like sedan VS Amaze is for customers who look for a sedan but cannot afford City like car.
  • Jazz is a spacious more luxurious car with a lot of features VS Amaze is a practical little sedan with only bare minimum features.
I feel the target customers is different for the cars and Jazz will be sold at a slight premium from Amaze - Just like i20 against Xcent. Definitely there will be cross-shopping between Amaze, Jazz and City and as always, Honda will be happy till the buyer stays with the brand.
 
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Re: Honda could stall Brio production - Jazz on priority

Acechip, What Jazz offers over Amaze?
  • Better interior Space
  • Practicality of a hatchback - especially if coupled with magic-seats
  • More features - ACC, Reverse camera, CVT box option with paddle shifters
  • Better looking and better quality interiors - comparable to City
Let me give you a brief comparo.
  • Jazz is targeted at the urban youth falling in 25-35 yrs age range VS Amaze at a small family who cannot afford a bigger sedan, say City.
  • Jazz is a sporty (looking) premium hatchback like the i20 VS Amaze is a family oriented economy sedan.
  • Jazz is for the customers who look for a premium car but don't want a City like sedan VS Amaze is for customers who look for a sedan but cannot afford City like car.
  • Jazz is a spacious more luxurious car with a lot of features VS Amaze is a practical little sedan with only bare minimum features.
I feel the target customers is different for the cars and Jazz will be sold at a slight premium from Amaze - Just like i20 against Xcent. Definitely there will be cross-shopping between Amaze, Jazz and City and as always, Honda will be happy till the buyer stays with the brand.
All good, except that the money power is more with the 30-40 age group person with a family, and thats where you will get the volumes. I20 Elite is sold because it is a Hyundai, not so much because it is the best hatchback. It isnt, by many yardsticks. Honda Jazz has been a failure as a brand. It was marketed exactly how you have described it, remember that "Jazzy" tune the advt had, where the guy brings anything from outsized luggage to a flowerpot etc for his wife/girlfriend ? That was too sophisticated for Indian tastes. And the build quality of Jazz (then) was the best amongst the hatches. It was percieved as too costly, kind of elite (I20 existed back then). Now, to position it in the 7-9 lac segment, Honda must have had some cost-engineering, keeping in line with its recent build standards for Mobilio, City etc. So it surely will not be oozing with premiumness.

And where does this leave Mobilio ? Only for families with parents and inlaws I suppose ? How many families owning a 10-15 lac car, really stay together as an extended family ? I see many Mobilios with 3, at max 4 people in the city and on highways.
One of the three (Jazz/Amaze/Mobilio) will take a hit. Surely.
 
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Re: Honda could stall Brio production - Jazz on priority

One of the three (Jazz/Amaze/Mobilio) will take a hit. Surely.
Mobilio has already taken a hit and nothing to talk of, Amaze has a cyclic up and down in the monthly sales figures now comes the Jazz.

Jazz if sensibly priced ( undercutting Elite substantially ) will make it a success. If they talk of 'Q' and price it higher it will be a sure Flop. I am tending to believe they have learnt their lesson for the last launch of the Jazz and will go all out to make Jazz a success.

Amaze either ways is undergoing permutations and combinations to make it feature rich and surely face lifts will keep it afloat.

To your point - Yes , IMO, Mobilio will take a massive hit in terms of sales figures.
 
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Re: Honda could stall Brio production - Jazz on priority

All good, except that the money power is more with the 30-40 age group person with a family, and thats where you will get the volumes. I20 Elite is sold because it is a Hyundai, not so much because it is the best hatchback. It isnt, by many yardsticks.
Agreed sir, money power is greater with the 30-40 age group and these are the target customers for larger sedans and SUVs, right? By target customers, I do not mean the people who will buy the car, but whom the car manufacturer is trying to woo. Isn't that pretty clear with Honda's strategy as well? Jazz's marketing is primarily online based now. They are teasing the market with updates in FB and twitter everyday. Even the teaser video was a racy one. That was not the case with Mobilio - the teaser was a spoon-fed one explaining the features of the car. Obviously Mobilio was targeted at families who want flexibility and wanted to carry an extra 2 passengers occasionally. Mobilio was definitely not targeted at the college kids or bachelors. Do you agree?

Honda Jazz has been a failure as a brand. It was marketed exactly how you have described it, remember that "Jazzy" tune the advt had, where the guy brings anything from outsized luggage to a flowerpot etc for his wife/girlfriend ? That was too sophisticated for Indian tastes. And the build quality of Jazz (then) was the best amongst the hatches. It was percieved as too costly, kind of elite (I20 existed back then). Now, to position it in the 7-9 lac segment, Honda must have had some cost-engineering, keeping in line with its recent build standards for Mobilio, City etc. So it surely will not be oozing with premiumness.
Yes, Jazz failed big-time in its last attempt. But it was ahead of its time IMO. Please dont tell it did not go well with the Indian market. It went well - people liked the car (I am not sure of the ad). But the price was way too much for a hatchback (perceived as a small car). Even now, I hear a LOT of my non-enthusiast friends say "Jazz was an awesome car man". If not for Jazz's pricing, we would not even have seen i20 selling this much today. It was Jazz which made i20 look VFM and pushed its sales. There was no looking back for i20 since then. [lol]

And where does this leave Mobilio ? Only for families with parents and inlaws I suppose ? How many families owning a 10-15 lac car, really stay together as an extended family ? I see many Mobilios with 3, at max 4 people in the city and on highways.
One of the three (Jazz/Amaze/Mobilio) will take a hit. Surely.
As I said before, Mobilio is targeted at families which might need more flexibility and travel with an occasional 6-7 members - same target audience as Ertiga. But that does not prevent others from buying it. We buy a car thinking of 6-7 years forward. So, there might be smaller families also buying it for "future" occupants. But again, I am talking about the buyers the company is targeting with the car.

I expect Amaze and City to lose some of its prospective customers to Jazz. Mobilio, IMO, will not be hit by Jazz - it is already hit by its pricing and interior design. Jazz and Mobilio, IMO, are not going to fight for the same customer - a very rare chance.
 
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TSIVipul

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If Honda prices the Jazz say 1 lac premium to Amaze, then going by the Indian mentality, the only question that arises in my mind is:
Will Ciaz let it survive?

If they price it at par with Elite i20, then they need to bring something that will look way more vfm than elite, else its dead. All in all, Honda needs to make a move addressing everything else they are gonna taste the failure
By the way, is Jazz gonna have 1.5 i-vtec this time?
 
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If Honda prices the ...
By the way, is Jazz gonna have 1.5 i-vtec this time?
No - It will be the 1.2-litre i-Vtec engine.
Honda will go after Quality and not quantity is the statement made by the top Honda officials - hence expect the pricing to be on par or above Elite.
 
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Honda will go after Quality and not quantity is the statement made by the top Honda officials - hence expect the pricing to be on par or above Elite.
If that is the case, can we expect better quality than City? I absolutely do not mind to pay extra if the quality is top notch. However, Honda is contradicting themselves with this (if this was an official statement). They should provide 1.5 i-VTEC option in the Jazz and prove that they are placing it as a niche player and not as a volume player. Why was "cost" and "small car" arguments brought in when questioned about the 1.5 i-VTEC??
 

TSIVipul

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Going by such acts from the manufacturers like Honda, I am now feeling that Indian manufacturers like Tata and Mahindra deserve to be respected.
They have made some full hearted approaches to give the customers the best bang for their buck in form of the likes of Zest, new Scorpio etc.

I can't understand how will they maintain the top notch quality at a lower price if the quantity won't be enough to justify even the net production costs? One thing for sure though; initial hype will result in long waiting lists which will slowly vanish, just like Mobilio.
 
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Honda will go after Quality and not quantity is the statement made by the top Honda officials
I seriously hope for Honda's future that Honda officials did not make that exact statement. It is disastrous to acknowledge that they are concentrating on quantity at the expense of quality. No manufacturer, even that of a Premier Rio or an ICML Rhino would ever say that in so many words.
 
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I seriously hope for Honda's future that Honda officials did not make that exact statement. It is disastrous to acknowledge that they are concentrating on quantity at the expense of quality. No manufacturer, even that of a Premier Rio or an ICML Rhino would ever say that in so many words.
Dude!!! Are you even reading before commenting?? What makes you jump the gun so badly?? I have quoted VM2011's post again for you. Please read carefully and make your comments. You dont read it correctly and blatantly criticize the company. How fair is that??

Honda will go after Quality and not quantity is the statement made by the top Honda officials - hence expect the pricing to be on par or above Elite.
 
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Akash1886

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Accommodating the new Jazz by stalling the Brio's production seems quite wise of Honda. As it is Brio could not attain much success in comparison to its competitors. The Quality aspect being vouched for by Honda means the upcoming car won't disappoint the Indian buyers. Also as fixed by Honda, 8th July is not far so that ways too Honda has taken the right step.

Regards

Akash
 
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