Finally Honda has accepted its mistake of relying on petrol engines for its cars in India. The company is now planning to develop a diesel engine which would power both the City and the upcoming Brio small car. This engine would be between 1.4-1.6 liters in capacity and would take atleast two years to develop. The upper end of the C-segment is become more fierce of late with the entry of new rivals. The City’s market share has decreased drastically as 65% cars sold in this segment are powered by diesel engines.
“We are developing a diesel engine in Japan to power City. It could take us more than two years. 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,” Jnaneswar Sen, senior VP (sales and marketing), Honda Siel Cars India, said.
Source – Business Standard