Honda India, the Indian arm of the Japanese automobile manufacturer has decided to launch the diesel version of its small car Brio earlier than the previous plans for launch in 2013 and may introduce its first diesel car version in India around Diwali 2012. The change in plans may be in response to the petrol price hike of Rs 7.54 in May 2012 resulting in lower sales of petrol powered car models.
Honda currently doesn’t have a diesel version of any car model in its India portfolio and has been developing a diesel engine through its Research and Development department in order to boost sales by harnessing the increase in the demand for diesel cars. The diesel version of the Honda Brio will be followed by the diesel versions of the Honda City sedan and the Honda Jazz premium hatchback.
The widening gap between diesel and petrol which currently stands at Rs 32 per liter has forced the company to offer discounts across its car models to maintain sales putting it in a compromising situation in comparison to automakers with diesel car portfolios.