Honda to Foray in Diesel segment in India - Asian Cars

For the time being, lacking of diesel cars in its portfolio is quite ridiculous for any auto group, perhaps the concept is now being understood by Japanese auto giant Honda. And for the same, company is now all set to stride in to the segment with two new cars next year. A diesel variant of its best-seller City and a newly designed entry level sedan Amaze will take the lead of diesel segment in Honda’ stable with fresh all-aluminium 1,500cc engine to be housed in the cars.

 
Though the absence of diesel power trains in Honda cars has already cost it very much resulting in losing market share, company is now in no mood to suffer anymore. While Amaze sedan, which is built on small car Brio’s platform, will make its debut in first half of 2013, Honda will launch diesel City after few months. With an aim to price its entry level Amaze competitively, Honda has decided to keep the length less than 4 meter that will eventually benefit company to enjoy lower excise duty benefit of 12 % as compared to 24% on bigger cars. Expected to take on the likes of Maruti Swift Dzire, Tata Indigo CS, diesel Amaze is likely to be priced at around Rs. 7 lakh.

 
Moreover, Honda will develop diesel engines and transmission in India. Engines will be manufactured at Honda’s Tapukara plant. If look upon Honda’s sales graph in previous years, company faced a sales fall of 4 percent in 2010-11 at 59,463 units and after this, last fiscal volumes of company fell down 8 percent. Though in the last seven months of current fiscal, sales are up, yet it is low base as supplies were very badly affected last year by tsunami in Japan and floods in Thailand.

 
Furthermore, Honda is also planning to introduce an MUV in 2014, which will also be based on the same platform and a SUV, to be launched in year 2015.

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