Honda to bring out diesel version of popular sedan City to counter competition
The Japanese automobile maker Honda whose mid size sedan City is a segment leader but is facing some serious competition now. According to a report in Business Standard, to stave off the challenge from competitors, Honda is developing a diesel engine for Honda City. It was mentioned that globally, Honda has only one diesel engine, developed for Europe. This 2.2-litre engine cannot be used as Honda City needs an engine of 1.4-1.6 litres. Also, it runs on fuel with low sulphur content, according to the report.
It was reported that the premium mid-sized sedan segment is one of the fastest-growing, with sales rising 25 per cent a year on an average. About 140,000 units were sold in 2010-11. Honda City has been the leader for a decade. Its share was 35 per cent in 2010. Its
The report mentions that Honda Siel Cars India (HSCI), the Indian arm of Honda Motor Company, also plans to develop a car smaller than Brio, its passenger car. With a price of less than Rs 5 lakh, it will mark Honda’s entry into the mass market. The report stated that in the premium mid-size sedan segment, 65 per cent cars sold by City’s competitors run on diesel. The growing difference between petrol and diesel prices has seen newcomer Volkswagen Vento (which has both petrol and diesel versions) race ahead of City in the last two months. Volkswagen sold 3,973 units of Vento in March, as compared to City’s 2,773 units.
The report quoted Jnaneswar Sen, senior vice-president (sales & marketing), HSCI as saying “We are developing a diesel engine in Japan to power City. It could take us more than two years.” He also mentioned that “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.” It was also reported that he ruled out importing diesel engines, as many others had done. He said “We believe we make the best engines and, therefore, there is no question of importing. Till then, we will continue to dominate the petrol segment.”
The segment is already heating and according to report, the leader in passenger cars Maruti Suzuki has already introduced SX4 petrol, but could sell 800-2,000 units a month. This February, it launched a diesel model. There have been over 10,000 bookings so far. Another competitor Hyundai Motor has launched the new Verna this week, with diesel variants priced between Rs 8.09 lakh and Rs 10.75 lakh. Ford Global Fiesta’s petrol and diesel versions will be launched in July, according to the report.
It was reported that the premium mid-sized sedan segment is one of the fastest-growing, with sales rising 25 per cent a year on an average. About 140,000 units were sold in 2010-11. Honda City has been the leader for a decade. Its share was 35 per cent in 2010. Its
The report mentions that Honda Siel Cars India (HSCI), the Indian arm of Honda Motor Company, also plans to develop a car smaller than Brio, its passenger car. With a price of less than Rs 5 lakh, it will mark Honda’s entry into the mass market. The report stated that in the premium mid-size sedan segment, 65 per cent cars sold by City’s competitors run on diesel. The growing difference between petrol and diesel prices has seen newcomer Volkswagen Vento (which has both petrol and diesel versions) race ahead of City in the last two months. Volkswagen sold 3,973 units of Vento in March, as compared to City’s 2,773 units.
The report quoted Jnaneswar Sen, senior vice-president (sales & marketing), HSCI as saying “We are developing a diesel engine in Japan to power City. It could take us more than two years.” He also mentioned that “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.” It was also reported that he ruled out importing diesel engines, as many others had done. He said “We believe we make the best engines and, therefore, there is no question of importing. Till then, we will continue to dominate the petrol segment.”
The segment is already heating and according to report, the leader in passenger cars Maruti Suzuki has already introduced SX4 petrol, but could sell 800-2,000 units a month. This February, it launched a diesel model. There have been over 10,000 bookings so far. Another competitor Hyundai Motor has launched the new Verna this week, with diesel variants priced between Rs 8.09 lakh and Rs 10.75 lakh. Ford Global Fiesta’s petrol and diesel versions will be launched in July, according to the report.
Honda City has always been a dream sedan for Indian car lovers.Japanese technology and classy features makes it a great choice for people in comparison to its rivals.
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