New Delhi, Jan 7 (IANS): To shore-up its market share in the sedan segment, Honda Tuesday launched the fourth generation of its Honda City with both diesel and petrol variants.

“With the best of both petrol and diesel technologies available in Honda City, we are very confident about the success of the model which will significantly contribute to our business growth in India," said Hironori Kanayama, president and chief executive, Honda Cars India.

This is the second diesel offering of the company after it introduced the new fuel option in its entry-level sedan Amaze in 2013.

The popularity of diesel fuelled cars in the Indian market is seen as the shift in production strategy of the Japanese automobile major.

Diesel in Indian is cheaper than petrol as it is partly subsidised by the government.
The sedan was first introduced in India in January 1998 and has a customer base of over 4.3 lakh across the country.

"The fourth generation City now available in diesel in India, Honda Cars is shifting gears to significantly expand its operating universe in the Indian market," said Yoshiyuki Matsumoto of the parent Honda Motor Company.

"New launch will be a very important facet in this process as the car has witnessed an exceptional success ever since it was launched here.”

The diesel powered variant is priced Rs.8.62 lakh-Rs.11.10 lakh (ex-showroom Delhi). It is powered by 1.5 litre i-DTEC engine with mileage of 26 km per litre.

The petrol variant of the sedan starts at Rs.7.42 lakh and goes up to Rs.10.98 lakh. It is powered by a 1.5 litre i-VTEC engine which comes with a fuel economy of 18 km per litre.

According to the company, it will start deliveries of the diesel variants of the new sedan immediately through its distribution network of 159 dealers in 101 cities, while deliveries of the petrol variants will start next month.

India is the first country to manufacture and sell the new sedan, which will eventually be sold in 60 markets to help expand the company's market share.