Honda has already updated 2 of its diesel engines to meet BS6 emission norms.
Honda Cars India Ltd. (HCIL) has no plans to cease the production of diesel vehicles anytime soon. However, this decision is in contrast to the global goals of the brand. The European counterpart is likely to discontinue its diesel models by 2020 and focus primarily on electric vehicles.
Currently, the Indian counterpart annually sells 75% of petrol and 25% of diesel cars (subject to vary). This is because of Honda’s late entry to the diesel segment and it didn’t gain the required popularity.
With the soon to happen implementation of BS6 norms, the cost of diesel vehicles could go up by at least Rs. 80,000/-. Another obstacle is the registration period which is restricted to 10 years for diesel vehicles. Meanwhile, petrol vehicles can go up to 15 years. These reasons act as a deterrent for people from purchasing a diesel variant.
Even in Europe, Honda has to face stringent emission norms. The CO2 emission must be cut to 95 gm/kg for each km, whereas the current average stands at 120.5 gm. Likewise, the demand for diesel too has taken a toll.
Honda plans to reduce the number of car variants to 1/3 by 2025 from what it is currently offering, globally. The company has also cut the global production cost by 10%. Saved funds will be used for research and development.
While most of the major players in the Indian automobile industry are backing out from using diesel powertrains, Honda might get to profit from their gamble due to exclusivity.
Honda Diesel Cars
– 2 upgraded engines for their line-up
– 25% share of total sales is by diesel vehicles
– Plans to cut 1/3 of their variants by 2025
Source – ETAuto.com
