Honda Civic: Can/Should It Return To India?

Update: The Honda Civic has been launched, priced from Rs 17.70 lakh to Rs 22.30 lakh, ex-showroom pan-India.

Back in 2012, one of India’s favourite premium sedans was discontinued. It wasn’t that the Civic lacked popularity, but Honda Car India decided that its growth lied in more affordable car segments. Hence, the focus shifted from cars like the Accord and Civic, to models like the Brio and Amaze.

However, fresh rumours imply that Honda is reintroducing the Civic in India. We’ll have to wait and see if the reports hold water, but till then, we’ve decided to take a look at the feasibility of Honda reviving the Civic name in India.

What killed the old Civic?

- 2012 was a time when diesel cars were gaining popularity, but Honda didn’t have an engine ready for the Civic in India (1.6-litre diesel engine offered in Europe wasn’t compatible with the quality of fuel sold in India). In fact, Honda’s first and only diesel engine in India was introduced in 2013, in the Amaze, before making its way into the City, Mobilio, Jazz and BR-V.

Trivia: The 1.5 i-DTEC is the fourth diesel engine Honda ever made for its passenger vehicles worldwide.

- Sedans as a body style were losing popularity to crossovers/SUVs, not only in India, but the world over.

- Honda itself found that its premium cars were losing numbers. In July 2012, the Honda Civic’s sales crashed by nearly 80 per cent, compared to the same month in 2011. Apart from the lack of a diesel engine, the Civic’s 1.8-litre petrol engine, while high on performance, was also heavy on fuel consumption. A similar problem was faced by the Accord’s 2.4-litre i-VTEC engine, which also contributed to the reduced resale value of both cars.

Why the Civic could return

Popularity: No one can deny the Civic’s popularity in India. Run through any discussion about the sedan’s return to the country and it will be almost impossible to find someone who doesn’t want that to happen. It’s a similar case with the Accord. In fact, a top executive from Honda Car India Limited (HCIL) told us that most buyers of the new Accord Hybrid were existing owners of the old Accord. Such is the fan/loyalty base of these cars.

Premium Is In: Premium/luxury cars are gaining popularity as more people are interested in spending that extra bit more to get more upmarket value. The Civic has a permanent place in buyer memory as a premium sedan and that could work in its favour.

Low Rival Interest: The competition hasn’t seen any significant changes over the years. Rivals like the Volkswagen Jetta, Skoda Octavia, Corolla Altis and the Hyundai Elantra sell in the early-mid triple digits, so their manufacturers are taking it easy on promotions. The Civic could strike when the competition has its guard down and make an impact for Honda.

Plugging A Gap: Between the Honda City and Accord Hybrid, there is a massive price gulf of nearly Rs 30 lakh. The Civic could close this gap and give Honda buyers something to consider after the City, since the Accord Hybrid is quite expensive.

Why it may not

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Low-Volumes: While its rivals aren’t showing much interest, there is a reason behind it. Buyers, still, largely prefer SUVs/crossovers like the XUV500 or the Creta and of course, MPVs like the Innova Crysta. Around the Rs 15 lakh mark, sedans start to lose their popularity, only to be regained around the Rs 30 lakh mark, where luxury brands come into the picture. As popular as the Civic will be, it will still be a low-slung five-seater sedan that will be closely priced to popular six- or seven-seater utility vehicles.

Price: When the Civic was discontinued in India, it was priced between Rs 12.60-15 lakh – a territory that the Honda City’s higher variants now fall into. The new Civic (tenth-generation) is a car that’s bigger and more technologically advanced than the old car that was sold in India. If introduced, the Civic will, at best, be assembled in India, since, at least initially, localization would result in excessive investment for a segment that’s moving slowly. That means we’re looking at a starting price of around Rs 15 lakh, at the least. How many takers would the Civic find at that price?

Would you buy the Civic if it was relaunched in India? What’s the price you’d find acceptable?