Japanese automobile giant Honda announced on September 21st that it will be launching very first diesel-driven car in the country by March 2014. The Honda diesel engine for this will be produced locally at a plant which will be established in Rajasthan.
“In India, an all-new diesel engine will be adopted sequentially to new models starting in FY14 (fiscal year ending March 31, 2014),” Honda Motor Co Chief Executive Officer Takanobu Ito said.
Honda Diesel Engine
“In addition to the high fuel efficiency, the cost competitiveness of the all-new diesel engine will be enhanced through local sourcing and local production to make new diesel models more affordable for customers,” Ito said.
Although, the CEO did not disclosed any details such as the new Honda diesel engine capacities which are in the company’s plans that will be developed by its subsidiary Honda Cars India. A source revealed that the diesel engine will first be featured in a Brio platform based new entry level Sedan which is under development at present.
“In Asia, in order to compete and win in highly competitive low-price markets and fulfill the diverse needs of customers, in addition to the all-new Fit Series, Honda will add sedan-type and utility-type models utilising the platform of the Brio,” Ito said.
Its further revealed the company’s plans to empower its position in the far eastern auto markets. Ito added, “The Company will further try to increase sales and growth in Asia by strengthening its mutually complementary structure in the region, especially among Thailand, Indonesia, India and Malaysia.”
Honda Cars India has been facing tough time as as it doesn’t has a diesel model in its portfolio. The competitors are benefiting from their Diesel model cars as huge price gap between petrol and diesel are continuing to exist and are likely to worsen with time as petrol prices are fluctuating frequently. Honda’s absence in the diesel car section is making it lag behind its competitors. Other auto makers having diesel models are gaining more shares in the market.
Honda Cars India sales during 2011-12 dropped to 8.47 percent to 54,427 units against the earlier figure of 59,463 units sold 2011’s fiscal.