Honda has announced a launch plan for diesel variants of its Indian models in the next financial year.
“An all-new diesel engine will be adopted sequentially to new models starting in financial year 2013-14,” Takanobu Ito, CEO, Honda Motors, said in a press conference in Japan.
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Honda, which has only petrol cars in India, has suffered due to the price differential between petrol and diesel, the Hindustan Times reported.
The Brio small car helped salvage some sales but even this tapered off in recent months with August seeing a 21% dip.
The first diesel car will be a sedan based on the Brio platform.
“Honda will add sedan-type and utility-type models utilising the platform of the Brio, Honda’s strategic model for Asia,” Ito said.
A diesel SUV based on the City will be launched by 2015, pitted against the recentlylaunched Nissan Duster and the Ford Ecosport, which comes next year. Local sourcing and production will make the cars affordable, Ito said.
Non-availability of both a diesel engine and models for the mass car segment have led to a 4% (58,951 units) and 8.5% (54,427 units) drop in sales for Honda in 2010-11 and 2011-12 respectively, The Hindu Business Line reported.
However, sales went up 54% to 29,932 units between April and August this year with the launch of the Brio compact and a price drop for the Jazz and City models.
“The cost competitiveness of the engine will be enhanced through local sourcing and production,” Ito said.
