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Honda City Now With Diesel Engine
Honda City's sales were higher than any other sedan in the entry level sedan segment in India. Its position as a market leader was trounced by the arrival of several diesel powered sedans. Honda has been loosing market share due to irrational pricing, lack of options and most importantly the unavailability of a diesel engine. Jnaneswar Sen, the senior vice-president (sales & marketing) at HSCI said the company was developing a new diesel engine for the City. He said: "The rapid dieselisation of the market has happened only in the last one year, as the price difference between diesel and petrol has gone up from Rs 10 to Rs 21. We had to prioritise our efforts to be a big brand with big volumes, which will come from Brio." The arrival of a diesel City will come as a boon to Honda Siel as it is struggling to maintain sagging sales.
Honda has one diesel engine in its line-up, but it is outdated and does not suit the City. The development of a new 1.4-1.6 litre diesel engine will take at least two years. A diesel powered Honda City might be on the Indian roads by late 2013. Although such a long gap for a diesel model to arrive will not help improve Honda's sales immediately it can be considered as a step in the right direction. The Hyundai Verna, Volkswagen Vento and the Maruti SX4 all come with a choice of petrol and diesel engines and this has helped them gain sales.
Apart from the diesel powered, Honda is also considering to develop a car smaller than the soon to be launched Brio. The new model is expected to cost below Rs 5 lakh and it will mark Honda's entry into India's volume car segment.
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