Honda will launch three diesel subcompacts in India, where demand for diesel vehicles is growing, the Nikkei business daily reported.
The carmaker also plans to increase the number of dealerships in the country by 60% to 250 in an effort to quadruple total sales to 300,000 units in fiscal year 2016.
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The Nikkei said Honda is looking to regain lost ground in India where it is lagging behind Suzuki and Hyundai.
Growth in diesel engines has been fuelled by tax incentives but Honda currently offers only one diesel model there. It now plans to introduce diesel versions of its City, Fit [Jazz] and Brio, a model designed exclusively for emerging markets, during fiscal 2014.
Engines for the three models will be manufactured at Honda’s plant in Uttar Pradesh in northern India. The Nikkei reported Honda will also unveil a seven-seat version of the Brio to capitalise on a growing demand for family cars.
The company additionally plans to spur demand for gasoline-powered vehicles by lowering the price of its petrol-powered Fit to compete with cars offered by local rivals.
