Honda India is a readying a sub 2.0 liter capacity diesel engine which it plans to introduce in India after its European launch. The small diesel engine will be ready for European models by 2012. The engine in question will be suitably modified for the company’s Indian models. It is likely to be used in the City, Jazz and the upcoming small car. Honda has only one diesel engine in its international lineup due to which it has faced lots of competition from global players. The said engine is a 2.2 liter oilburner which the Japanese automaker uses in the Accord and CR-V.