Honda’s India Comeback Bid Driven by Diesels, Exports

MUMBAI – Honda India looks to diesel power to help it reclaim market share that shrank to 1.6% from 2008-2011.

The auto maker is offering diesels for the first time in 17 years with two cars in 2013 and one light vehicle in both 2014 and 2015.

Launching this spring is the Amaze, an entry-level, low-tax-bracket compact built on the Brio platform and featuring a 1.5L diesel with a gasoline option. Next is a diesel version of its best-selling midsize City.

Planned for 2014 is a 7-seat multipurpose vehicle, followed in 2015 by a low-tax-bracket 5-seat compact SUV, both using an architecture newly developed for the Fit (known elsewhere as the Jazz).

The Amaze diesel’s locally built 1.5L i-DTEC turbo engine is a scaled-back version of the 1.6L oil-burner destined mainly for Europe.

“Honda will use different sets of tunings for this diesel engine, a fixed-geometry turbocharger and a variable-geometry turbocharger,” Honda India Vice President Jnaneswar Sen says. “In the lower state of tune, it will produce 75 hp and in the higher tune, 95 hp.”

A lower-displacement diesel for smaller cars later may be developed internally or supplied by Fiat India.

Stepped-up exports also are part of Honda’s comeback strategy.

During its 17 years in India the auto maker has exported only 1,028 vehicles. Last month it shipped the first consignment of 390 locally made Brio hatchbacks to South Africa. Honda plans to make its Noida plant in New Delhi plant an export hub rolling out 2,500 units every month.

“India has a lot of potential to become an export hub, not only for South Africa but also for the South African Development Community that includes Tanzania, Kenya, Mauritius” and several smaller countries, Honda India President and CEO Hironori Kanayama says.