Honda recently launched its all-new CR-V in India with a higher price tag.

Honda Siel launched its all-new CR-V in India merely two months after its international launch. However, it is substantially more expensive than the outgoing model. Masahiro Takedagawa, president and CEO of Honda Siel, defends the Rs 18 lakh-plus price tag.

“There’s lots of innovation and technology in the new CR-V. And the quality is the best. There were foreign exchange issues which made us price it accordingly. I think it is good value and worth its price tag,” said Takedagawa. Honda expects to sell around 200 to 250 units a month but he is not particularly worried about volumes. “Volumes are not my concern. What I want is to retain our leadership position in the SUV segment.”

Takedagawa estimates that 50 per cent of sales will be for the automatic as opposed to 40 percent for the previous model. “Our five-speed auto is not only very responsive but it will narrow the fuel efficiency gap with the manual.” In contrast, automatics account for only 5 percent of City and 40 percent of Civic sales.

Unfortunately, there are no plans to introduce Honda’s refined 2.2-litre diesel engine. But how long can Honda keep ignoring this vital segment? “We are closely monitoring this segment. In Europe 60 per cent of demand is diesel but in most of Asia the majority is petrol. India looks like it is following the European trend but to really enjoy the benefits of a diesel powertrain, you need to clock a lot of mileage and have improved road conditions. Then I think the time will come for us to look at diesel,” says Takedagawa who feels that hybrids are a better solution for India’s stop-start conditions.

So will Honda introduce them? “They are too expensive right now but if the government gives us some concession we can launch them. Hybrids work best with larger, thirstier engines where the cost benefit is greater.”