Honda plans to launch diesel cars in India

Japanese auto major Honda plans tolaunch diesel cars in Indiabecause of increase in demand for such vehicles against the backdrop of highpetrol prices, a top company official said on Monday.

The company is engaged in developing diesel engines back in Japan, HondaSiel Cars India Senior Vice-President (Sales and Marketing), Jnaneswar Sen ,said.

"The Research and Development team in Japan isdeveloping diesel engines. It is premature to say that the products will berolled out on diesel (platform)," he said.

Declining to reveal when diesel variants would be rolled outin India, he said theproposed diesel engine was being developed for a specific market like India as mostof the markets worldwide prefer petrol cars.

On the "Brio " that was formally launched on Monday,he said "Honda is targeting first time buyers and those who already own aHonda vehicle".

"So far we are present in top 20 per cent (of themarket). Now (with launch of Brio) we are reaching out to many first timebuyers. Besides, in our current range, we have excellent repurchase (amongowners who already own a Honda)", he said.

While the Brio costs Rs 3.95 lakh (ex-showroom) in Delhi where the VAT(Value Added Tax) is 12.5 per cent, it costs Rs 4.04 lakh (ex-showroom) inTamil Nadu where the VAT is 14.5 per cent, he said, adding there was a pricedifference of around Rs 9,000.

Brio is available in four variants. The entry level ispriced at Rs 4.04 lakh (ex-showroom Chennai), while the top end model is Rs5.20 lakh (ex-showroom Chennai).