Within 3 months of launch, new Amaze gives Honda more space in sedan market

Japanese carmaker Honda, the fifth-biggest player in the domestic passenger vehicle (cars, vans, and utility vehicles) market, has found a sweet spot with the new Amaze sedan, launched three months ago. The auto giant has sold 30,000 units of the Amaze, the highest volume clocked by any new Honda model within three months of the launch. 

The sales volume has made the Amaze the second-biggest model in the compact or sub-four-metre sedan space, ahead of Hyundai Xcent and Tata Motors’ Tigor. In FY18, Amaze ranked behind these two models in volume and also behind the Maruti Suzuki Dzire, the segment leader. The strong demand for Amaze has given the company a confidence to hike price by Rs 10,000 from early this month. The price rise is a little below 2 per cent on the launch price of Rs 559,900 (for the entry-level model).

Rajesh Goel, senior vice-president and director (sales and marketing) at Honda Cars India, said the response to the Amaze has been better than company's expectations.

“We are ahead of our target and this momentum should continue given the upcoming festive season. However, we cannot deliver more than 10,000 vehicles a month as we have to ensure production of other models such as the WR-V and City," he said. On the price hike, Goel said the company had decided to launch at an introductory price to test the acceptance and offer an even attractive price to the first set of buyers. He said there was a waiting period of about a month on different variants of the Amaze. 

The Amaze has single-handedly been contributing to 40-45 per cent of Honda's total domestic sales. It has also helped the company post a double-digit growth in overall sales.

Honda, which is well known for the mid-size City sedan, has also reclaimed its position as the second-largest player in the domestic sedan segment. It had lost the position to Hyundai in FY18, when the Korean carmaker had launched the new Verna. Maruti Suzuki leads the sedan segment with its two models - the Dzire and Ciaz.

India is the first country to launch the second generation Amaze and the car has been developed considering the needs and aspirations of Indian customers. The second-generation Amaze boasts an all-new bold design, a sophisticated and spacious interior, a more efficient powertrain, outstanding driving dynamics with a strong focus on stability and ride performance. And, it is equipped with the latest safety technologies and convenience features. 

The car sets a new benchmark with 96 per cent of components by value being sourced locally. The outgoing model had a localisation of 94 per cent. Launched in 2013, the first generation of the Amaze clocked a cumulative sales volume of 257,000 units before it was phased out this year. 

Goel said the decision to develop a sedan first instead of attaching a boot to a hatchback car has paid off. The first generation of Amaze was developed after the Brio. Unlike the outgoing Amaze (which got part of the sales to the taxi segment and cab aggregators) 100 per cent of the new Amaze sales is coming from personal segment users.