The Budget 2012-13 has brought clarity for automobile manufacturers with regards to the proposed additional tax on diesel cars. Honda India is among those looking for that clarity in order to proceed ahead with its plans to invest in developing and manufacturing diesel engines. The Japanese automaker’s Indian arm Honda Siel Cars India has been planning to enter the diesel car segment and cash in on the surge in the demand for diesel powered cars.
The company has been developing and working on 1.4 and 1.5 liter diesel engine prototypes for compact cars at Honda’s Research & Development center at Tochigi (Japan). Mr. Jnaneswar Sen Senior VP, Sales & Marketing Honda Siel Cars India confirmed that the company has been developing a small diesel engine.
Honda India’s car sales have suffered significantly in 2011 due to the lack of auto component supply due to the floods in Thailand. However, a major contributor to the low sales has been the absence of a diesel car portfolio in the India market which is currently being driven by the growing demand for diesel powered cars.