Can the new Honda City diesel imitate the profit saga of Amaze

Honda first diesel project was Amaze launched in 2013 April, the launch of the car has taken Honda on a profit high. Today it has barely been a year since the car’s first step foot on Indian roads, and Honda has sold nearly 1 lakh piece of the car. Amaze was introduced to stiffen the battle in sedan segment and its fiercest rival is Maruti Suzuki Swift Dzire. The attention grabbing features of the car were the trendy exterior sculpt, powerful engine capacity, abundantly roomy interiors and best-in-class 25.8kmpl mileage churned by Amaze diesel.

Taking the marvellous profits contributed by Amaze into consideration Honda has very recently introduced the fourth gen City diesel. Now the latest hot topic of discussion would be if the new City diesel can take on the continuous profit roll rhythm of Honda Amaze. The CEO of Honda Cars India is positive about the demand for City being on the same par as Amaze.

The car market in India is at present going through a dim phase, but the situation is the other way round for Honda Cars India. During the 2013 April to December period, the company recorded a massive sale hike of more than 100 percent. The comparison was done taking year on year profits into consideration. The Amaze diesel is what captured the impressive car buying market in India, now what about the profits generated from sale of petrol and diesel Amaze. The diesel segment contributed about 70 percent of sales. The fourth-gen City diesel runs on mileage of 26kmpl, and it now does seem possible for Honda to achieve its desired profit sale figure.

The Indian car market is going through a rough patch; recession has hit the country harder than before. Fuel and commodity prices have increased, petrol rates over the past eighteen months has shot up to 4 percent, and the situation is even steeper with diesel costs, which has noted a 30% hike.

Recently there has been news about customers opting for petrol cars over diesel, since diesel prices have increased. The Indian Government has introduced undesirable policies to slowly increase diesel prices and monitor the flow of the fuel. Honda is at the moment keen to deliver efficient and stylish models with its diesel and petrol variants. The company has said that it has no say in working on increasing the demand for diesel or petrol cars. The current unfavourable macro-economic scenario caused by the weakening of Indian rupee that has led to fiscal deficit is the main sale spoiler.

Honda Cars India is keen to strengthen its dealer system in tier III and tier II cities, and is keen to establish 170 showrooms within the terminal phase of present fiscal and will cater to about 107 cities.

2014 Honda City looks as attractive as expected, the headlights, grille and wheel arches are designed with utmost professionalism. The height of the new Honda City is 10 mile meters greater than its predecessor. The insides are packed with opulence as well; the black and beige theme emits sparkling radiance. The instrument cluster flashes a jazzy green light when the engine is shifted to eco mode. The car is fitted with iVTEC and iDTEC petrol and diesel engine, the starting price of diesel car is Rs 8.62 lakhs and the petrol car costs Rs 7.42 lakhs.