Honda will be setting up a diesel engine plant in Rajasthan as it prepares to launch its first diesel car in India. The Japanese carmaker which recently launched the brio based sedan Amaze has stated it will be launching the Amaze in India with its i-DTEC diesel engine.
The Honda Amaze diesel will be get a 1.5-litre i-DTEC diesel engine developed using Honda's 'Earth Dreams' diesel technology. Honda which imports some of its petrol engines from Thailand has decided to build the diesel engines in India considering the lower costs and high demand.
The Honda Amaze is the Japanese carmaker's first global diesel car. Based on the Brio hatchback, the Amaze is a sub-four metre sedan that will take on the likes of the Maruti Suzuki Swift DZire and Tata Indigo.
Honda Car's senior V-P (sales & marketing) Jnaneswar Sen has stated that the company was planning to establish a green field diesel engine plant exclusively for the Indian market. He added that the Honda was planning to launch its first diesel car in India at an aggressive price and having the diesel engine plant in India was vital for this to happen.
Honda's diesel engine plant will be set up in Tapukara in Rajasthan by next year. Honda has not revealed the production capacity or the amount of money it will invest in to the plant.
Honda could use the same diesel engine to be introduced in the Amaze sedan in some of its other best selling cars. However the current models will not get the diesel engines. Instead Honda is planning to add diesel variants to new cars that it will launch in the next 2-3 years.
The Honda Amaze's price in India will be between Rs.5 lakhs and Rs.8 lakhs. Honda is planning to reduce the cost of production through increased localisation and production. The Amaze is expected to be launched in India in mid-2013 providing enough time for Honda to begin operations at its engine plant.
Honda is also planning to make its new diesel engine plant as a hub for diesel engines. The first country that will get Honda's made in India diesel engine will be the UK where Honda has already launched the CRV in diesel.