Honda finally talks diesel for India

Honda Motor Co’s global CEO and president Takanobu Ito has confirmed growth directions for the company’s operations in India. This includes new two-wheelers and, importantly, a diesel engine to power a range of new products to be launched in the next fiscal year. In a massive consumer shift to diesel cars in India, Honda with its petrol-only stable has been found wanting. Speaking at a press conference in Tokyo on September 21, Takanobu Ito announced, “In India, an all-new diesel engine will be adopted sequentially to new models starting in FY2014 (fiscal year ending March 31, 2014). 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.”

The Honda diesel engine will be a 1.5-litre unit that has been developed specifically for the Indian market, but is likely to be exported to other parts of the world. According to company sources, this grounds-up 1.5 diesel unit is likely to come in two power outputs to cater to a wide range of products.

The first vehicle to be powered by the new 1.5 diesel engine will be the Brio-based entry level saloon in mid-2013. This model is likely to be followed by the Brio hatchback later in the same year.

Honda has also confirmed the introduction of the new Jazz in 2013 and its global launch within two years of its unveiling. This period will also see the launch of the next-gen City and an all-new SUV based on the same platform, which is expected by 2015.

Honda’s new SUV, which will be based on the next-generation City platform, will be the first of its kind for the company, and is primarily aimed at the exploding compact SUV market in India, where recently introduced products like the Renault Duster have become a runaway success.

Honda’s new model offensive is likely to boost the company’s flagging sales in India, especially since the company will then have that one essential ingredient critical for success in the Indian market – a capable diesel engine. The Japanese major 's bunch of new cars are part of product developments designed to double global sales to six million cars per annum by March 2017, three million of them in emerging markets. “Now is the time to counter-attack,” said Ito. “The goal is ambitious but achievable. We must work towards it.” Honda will implement global operation reform through concurrent development by all six regions, adoption of locally optimised design drawings and improvement of production efficiency through global sourcing.

Two-wheeler business

In 2011-12, Honda sold 15 million motorcycles and 3.1 million automobiles worldwide. Its target for 2016-17 is over 31 million sales combining 25 million two-wheelers and six million automobiles.

India, among the emerging markets, clearly is a key player in that growth. According to Ito, “In India, Honda will strive to further grow its motorcycle business through introduction of highly-competitive models in the 100cc segment, and through the start of production at the third plant in India which is scheduled to be operational in the first half of 2013.”

Autocar Professional has learnt that Honda Motorcycle & Scooter India is expected to roll out around four new 100-150cc two-wheelers including a scooter between the years 2013 and 2014.