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May 10 2013

Why Did Honda Take So Much To Introduce Their Diesel Engine in India?

When Honda entered India, petrol was the preferred fuel, with time, the difference between petrol and diesel prices magnified. However, till 2013, Honda fared well without a diesel car in its portfolio. As almost all the major manufacturers in India have diesel engine cars in their portfolio, even Honda had to join the party, but why so late? Why now when the market is already flooded with so many diesel vehicles?


From a buyer’s point of view, Honda might have lost the battle somewhere owing to a lack of diesel in their portfolio. But one look from Honda’s perspective suggests that diesel wasn’t even the need of the hour when the company was selling petrol vehicles like hotcakes. Look at the sales of Honda City, Accord and Civic in their respective segments and it becomes clear that Honda almost led all the segments as far as sales of petrol cars were concerned.

Another important point to note is that India is still not the market where Honda sells majority of its vehicles. So why change strategy for such a small market? However, Honda has extended a warm hand for India and has come out with an engine and a car specially made for India, the Amaze. The 1.5 litre i-Dtec engine that makes entry in the Amaze is also specced keeping Indian mindset in mind.

Honda Amaze will be made in India and hopefully it should bring a significant rise in numbers with many Honda loyalists in the country and Honda basically being good at its job with the car quality and comfort. Expected to be priced at Rs.6 lakhs onwards the Amaze should be a tough competition for the current segment king, Maruti Suzuki Dzire.


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