Honda Siel Cars India Limited (HSCIL), the Indian arm of Japanese auto major Honda Motor Company, has announced its plans to launch a CNG variant of its immensely successful sedan, Honda City, in India. Launch of the new model is anticipated in October 2012 with a price extending by Rs. 50,000-60,000 than the current tag of City.
Since its launch in 1998, Honda City has been a favourite model in the country and the company too has regularly revived City sedan owing to its immense popularity and visual appeal among the Indian auto enthusiasts. The entry-level sedan is often cited as Honda's benchmark model in the country.
Owing to the lack of availability of alternate fuel, City (other than petrol) has driven the company's decision of introducing a CNG variant of the same. Honda has been under no illusion that the availability of a diesel variant in the City's rival cars has resulted in company's sales-cut. However, in a bold move, the car major has reached another benchmark by launching the first CNG model in the entry-level sedan segment. The company feels the new CNG City sedan will give it a competitive edge over its rivals like Hyundai Verna, Volkswagen Vento and Skoda Rapid.
Sources have revealed that Honda had worked hard in developing the new CNG City model by making very few alterations in its existing petrol model. Without revealing his identity, the source commented, “The suspension of the car has been strengthened as the CNG tank will be housed in the boot of the car. Also, a few changes have been made to the engine of the car in line with the requirements of a CNG car.”
According to TOI, Honda has planned not to install the CNG kit at its manufacturing facility in the upcoming City model. The production factory will only assemble the special CNG city variant with all the changes, except the CNG kit. The kit will be installed at the facility of company's official dealers.
On the other hand, the shortage of CNG throughout the country could spell some problems for the future of new entrant. However, Honda is playing a safe game and is already at end-stages of developing a new diesel engine prototype for Honda City too, which is expected to sparkle at the showrooms from next year. When asked about the development of a new diesel engine, a company official refused to provide any details.
The sales of Honda have slipped over last year with the reason cited to be the ever increasing petrol prices. It would be exciting to see the new CNG City's acceptance by the Indian car buyers as the peak time of festive season is just around the corner. Indian festivities is the time when most of the auto companies mark their peak sales for the complete year.
