Honda set to take on Vitara Brezza with a compact SUV based on new Amaze platform

In addition to the compact SUV, Honda Cars India is also mulling the possibility of bringing in HRV premium SUV.

Honda Cars India Limited (HCIL) is the fourth largest carmaker in the country and holds a market share of about 5.55 percent. Despite being in the business for over two decades, the Japanese carmaker's success in the small car segment is limited. Hence, the company now plans to focus on compact SUVs and sedans to increase volumes in India.

Honda Cars India showcased the new generation of the Amaze sedan at the recently concluded Auto Expo. The sedan is based on an all-new platform, codenamed 2UA. Honda is currently studying the feasibility of bringing a compact SUV that goes up against Maruti Suzuki Vitara Brezza using the new Amaze's platform, reports ET Auto.

"We prefer the SUV space to small cars. The SUV is a growing segment in India; it offers more potential than a small car in the current context. We are studying multiple SUV options on the new Amaze platform," the publication quoted Yoichiro Ueno, president and CEO of HCIL as saying. The report also says next generation of the Brio is not a priority for Honda now and the project is currently on the backburner.

Honda's decision also seems to be prompted by the success of the SUV-like WR-V crossover. The WR-V with its rugged look, performed much better than expected for Honda while the MPV-styled Mobilio didn't go down well with Indian buyers. Honda eventually discontinued the Mobilio while similarly styled BR-V sales also fizzled out after an initial excitement.

Honda is expected to make no experiment with its new project in terms of style. The compact SUV is expected to get a proper boxy design in line with Maruti Suzuki Vitara Brezza and it will be packed with features to get an edge over the rivals.

In addition, Honda is also studying the possibility of bringing in HRV premium SUV for the domestic market. Meanwhile, Honda's new SUV thrust will kick off with the new CR-V launch later this year. The model was showcased at Auto Expo 2018.