Though a late entrant into the diesel-powered car segment, Honda is confident that there is sufficient headroom for growth. Sales of Amaze diesel version prove the point, as will the new Honda City, said Jnaneswar Sen, Senior Vice-President – Marketing & Sales, Honda Cars India Ltd.
Launch of the new model Honda Amaze and the diesel version – a first for Honda in India – contributed to 66 per cent growth in the current year compared with last year. Now, the launch of the Honda City in diesel format will help the car manufacturer sustain the robust growth, said Sen.
Traditionally, the preference for diesel cars may have been underpinned by the huge gap between diesel and petrol prices — diesel was up to Rs 25 a litre cheaper. But, subsequent changes in Government policies saw the gap narrow to about Rs 10 and diesel cars are losing ground relative to petrol models.
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Demand for the new City is buoyant with bookings so far at about 9,933 units.