The answer to this question depends directly on the price of Honda Amaze, which will be revealed when it is launched in Delhi day after tomorrow. All we can do here, is a speculative report.
But a glance at the question, and one would be tempted to say yes, (just like we did, a few months back). And why will they be not afffected? Honda City is priced in the range of Rs 7.32 lakhs to Rs 10.65 lakhs, ex-showroom. While diesel Amaze, which is expected to be priced at Rs 7 lakhs, will obviously generate more sales than the City, considering the love for diesel powered cars in India.
But then, this does not answer our question. Our question was will the Amaze eat City’s sales? Take a closer look. You will realize, the answer is actually no. Honda Amaze will not eat into the sales of the existing City sedan.
After driving the Amaze diesel in Goa last month, we can say that Honda India has developed their new Brio based sedan for a totally new segment of car buyers. This segment includes buyers who are tired of Maruti Suzuki Swift DZire. Remember, Honda India is not trying to beat Maruti Suzuki in sales, (as of now, there is no one in the auto industry with that capability), but all they are trying to do is offer a Honda option in the segment where Maruti Suzuki DZire is the leader.
Honda City has its own set of buyers and they are not going anywhere. If they (City buyers) wanted to, they would have shifted long back to other brands who have been already offering a diesel engine option. Honda City has been registering a good average of 3,000 units every month, even though it is only offered in a petrol option.