Honda has cancelled the launch of midsize HR-V SUV. This was reported by Autocar India. The main reason behind cancellation of the launch seems to be Honda’s failure to achieve enough localisation for the HR-V components
Only about 30 percent of localisation of the car components was achieved and it was not enough to keep cost in check. After foray on companies like MG Motors and Kia, it was imperative for Honda to rely on localised components to maintain its advantageous position in the Indian market and with having to import 70 percent components of the car from Japan, the company decided it was best to call of the launch of the HR-V in India. It is also being said Honda would compensate the suppliers who had invested heavily in making HR-V components in India and had participated in the trials for their loss.