Honda’s prime objective in developing this 1 liter petrol engine is to take on the country’s top selling models such as Maruti Suzuki Alto, WagonR and Celerio besides Hyundai Eon while also enabling the company gain a foothold into the small car segment.
Honda has doubled its market share to about 7% in just two years following successful launch of diesel variants of Amaze and City. Now, the Japanese company gears up to challenge top two car makers in India, Maruti Suzuki and Hyundai where small compact cars are concerned.
Honda’s new 1 liter petrol engine could be a three cylinder derivative of 1.2 liter four cylinder iVTEC motor seen on board the Brio. The company has not yet confirmed development of a small car but reports suggest that Honda will be using their third plant that will come up at Vithalpur-Manpur area in Gujarat for its production.
It was in July this year that Honda emerged as the third largest automaker in the country. Volumes increased 39% to 15,643 units in July 2014 while the period April to July saw an increase of 40% to 56,361 units. Honda’s performance in this quarter resulted in the displacement of Mahindra and Mahindra which experienced a 5% drop in monthly sales to 14,708 units.