Yup Krishna. They could have used a smaller engine and could have come with an outright smaller car instead of trying to market the innovative-arrangement of seats of the JAZZ. How many times do you need to keep a bike (cycle) in the car? How many times is it just two people and a lot of luggage? Honda marketing got it completely wrong. In the Indian perspective, as you said, the hatchback will be looked upon as so and will be compared to that category (on price too). Any roadside running-nose kid could have told Honda that was a recipe for flop.
However, it's possible that the car, with whatever it has to offer, could have been (or is) a significant success in the West where people, when alone, often carry a lot of luggage (ourdoor activities etc). In India, people generally carry lot of luggage and lot of people at the same time. With the Jazz, it's really easy to see that even company like Honda can end of making major mistakes fundamentally.
My car company is not hiring anyone from Jazz concept to marketing team in India ;D
On that note, it will be really interesting to see if any Honda car in India, apart from the now-legendary City, can be called a success.... .... of course, some hatchbacks cannot be compared to any other:
like the Golf GT
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