Honda will be launching the Mobilio MPV in India next month and this is the first time the company will enter the MPV segment in the country. We got in touch with Mr. Jnaneswar Sen, Senior Vice President, Marketing and Sales, Honda Cars India Ltd (HCIL). He answered our Mobilio related questions.
1) Is there a definite surge in the MPV segment in India? What kind of buyers are you expecting will buy the Mobilio?
If we consider the current market size and the players that are there, the MPV segment adds up to between 10-12 thousand units a month, so a year’s volume is about 1.5 lakh units, and that’s not a small segment. The segment grew very well a year ago but if we look at the last financial year (2013-14), there has been a drop in the MPV segment, which is actually in line with the industry degrowth. We are confident that the launch of the Mobilio will revive the MPV segment, thanks to the car’s finely judged balance of styling and practicality.
Mobilio is principally intended for customers seeking this stylish and spacious MPV for their personal use. With its strong desirable values, we expect that Mobilio will appeal not only to MPV segment customers who generally have large families but also to families which have traditionally opted for a sedan or an SUV.
2) The current segment leader in the MPV space is the Toyota Innova, which although priced at a premium, still holds majority market share. What strategy does Honda have to lure Innova buyers to the Mobilio which is expected to be priced much more competitively?
We showcased the Mobilio for the first time in the Indian market at the Auto Expo in February and got very good response for the car. We have created a special microsite for the car which has been receiving good traffic from visitors. From early July, we will begin its focused pre-launch ATL and BTL activities.
Honda has a strong legacy of MPVs globally with successful products like the Odyssey and Freed. We have been studying the Indian market for some time and understanding the needs of the customers. Basis our research of the evolving needs of the Indian customer, we have put together all the learnings from Honda MPVs over the years in developing the Mobilio to offer space, comfort and utility in just the right size.
The development approach for Mobilio has been to address concerns related to full size MPVs like their big size and low fuel economy. On the other hand, it retains strengths of full size MPVs with regard to Space and Convenience. The vehicle has also been given a distinct progressive style so that it appeals as a vehicle for personal use. The Mobilio will help evolve the MPV segment in India like the way small car segment has evolved.
It is still early to talk about the pricing of the car. All I can say we are concentrating on making it a compelling and attractive package.
3) How much of localization is expected on the Mobilio?
We have been working extensively to increase localization for all our models for e.g Amaze, Brio and City have more than 90% localization. We will share localization details for Mobilio during the launch time.
4) With the diesel versions of the Amaze and City, the engine noise is quite high, can we expect a change on that front in the Mobilio with better insulation?
The NVH performance of each model is in line with the segment it is operating in. We are confident that the NVH performance in Mobilio will match the expectations of its customers.
5) MPVs find good demand in semi-urban markets, where Maruti Suzuki continues to lead. What will be the strategy with the Mobilio to compete with the Ertiga, or even compact SUVs offered at a similar price point?
We are excited about the launch and are confident that the car will be widely accepted by the customers across India. Since it is too early to talk about pricing, we will not comment on strategies related to pricing right now.
6) Do you think the Mobilio will lure prospective City customers, leading to cannibalization? The same trend has been seen with Toyota (Corolla-Innova), and Maruti Suzuki (SX4/Ertiga).
The customer profiles for both the models are quite different. With the Mobilio, we will be reaching out to large families who have functional requirement of a stylish 7-seater. We don’t think that there will be any impact on the City sales.
7) What will be the major USP of the Mobilio? How much market share/units per year are you expecting to do with the MPV?
The USP of the Honda Mobilio will be to provide comfort and space at full capacity. It is also by far the most stylish MPV in the market for many years to come.
Over the years, Honda has perfected its packaging technology based on its concept of “Man Maximum, Machine Minimum” which is the basic approach to Honda car design calling for maximizing the space available for people and minimizing the space required for mechanical components.
The Honda Mobilio is a mid-size stylish 7-seater MPV. The 3-row seating is being preferred by those whose lifestyle includes spending a lot of time together with their families. While some consumers have felt the crunch for space and comfort in compact MPVs, some find it inconvenient to driving and parking full size MPVs. Consumers today are also very keen on vehicles with great fuel efficiency. We have put together all the learnings from Honda MPVs over the years in developing the Mobilio to offer space, comfort and utility in just the right size for large families.
With its strong desirable values, we expect that Mobilio will appeal not only to MPV segment customers with many family members but also to families which have traditionally opted for a sedan or an SUV. These customers have functional requirement of a 7-seater but have a hesitation of buying an MPV. Honda aims to reach out to those customers. Mobilio is set to meet his rational needs of space, fuel economy and quality and also his emotional wants of style and progressiveness.
Honda Mobilio will be yet another important launch for HCIL’s growth in India and help in expanding our operating universe further. We are hopeful that the Mobilio will be a game changer in its segment and evolve the MPV segment in India.
