Saturday, May 14, 2011


If you were keeping an eye on the monthly sales figures of the Indian auto industry, you would have clearly noticed that since the start of this year, Japanese manufacturer, Honda Motors has failed to increase their sales figures, in fact their sales figures are on the decline.

There could be many reasons behind this decline, stiff competition, entry of new manufacturers, unavailability of an entry level car, etc. But the main reason that has pushed the sales figures of Honda Motors on the negative side is the unavailability of a diesel option.

According to Business Standard, Honda is preparing itself to launch a diesel engine powered Honda City in the Indian auto industry very soon. The report suggests Honda to develop a new diesel engine somewhere in the range of 1.4L-1.6L which will perfectly fit in Honda City.

Mr Jnaneshwar Sen, Marketing & Sales, Senior VP, Honda Motors India, stated, “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. We believe we make the best engines and, therefore, there is no question of importing. Till then, we will continue to dominate the petrol segment.”

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