Hondas new game plan may revolutionise the entry level sedan market

Friday 07 December 2012, 12:06 PM by

The new Honda Amaze has been launched in the Thailand market, with a revolutionary new 1.5 litre diesel engine. This vehicle has been launched as a sedan version of the popular Brio hatchback, and it will showcase Honda's prowess in diesel segment for the first time. Honda also plans to put this engine into the Jazz, in the future.

Hondas new game plan may revolutionise the entry level sedan market | CarTrade.com
Honda’s new game plan may revolutionise the entry level sedan market

Honda Amaze is likely to be powered by the 1.5 litre diesel engine, which would produce close to 90 bhp power and a maximum torque of 206 Nm. It is believed to be around 30 kg heavier than the Brio, which means that performance figures will be quite impressive for this sedan. The diesel model would also get a new 5-speed gearbox, with new shift ratios to suit Indian driving conditions.

Evidently, it is great news that Honda has finally understood the need for a diesel engine in the Indian market after being decimated by rivals. However, launch of the Amaze may affect the sales of Honda City, which is the largest selling model of Honda, starting at Rs.7.26 lacs (ex showroom New Delhi).

India is not a market that has matured enough for the sale of a premium hatchback. This is the reason why no hatchback in India is priced at the same point as the Jazz (Rs. 5.99 to 6.56 lacs). Indians primarily associate a hatchback with low initial and maintenance costs, and high fuel efficiency. As a result, Jazz has recorded unimpressive sales figures in India, despite being a high quality vehicle and lowering of original prices.

Now, at the current price point, it is likely that there will be a three-way battle between the Honda City, Jazz and the Amaze. The new Amaze is likely to eat into the sales of the Honda City and Jazz, as it is speculated that the Amaze with a diesel engine will be available at a price under Rs 8 lacs.

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