Honda Siel Cars India's new range of sedans - City ZX - is due to be launched on November 22, setting the stage for increased competition in the 'C' segment (entry and next level of sedans). The City ZX's launch comes on the heels of the launch of Ford's new sedan, Fiesta.
At a press conference on Saturday to showcase City ZX, Honda Siel's general manager (marketing), Rajive Saharia said that Fiesta had been competitively priced and the outcome would be a buoyant and fiercely competitive market.
Fiesta's introductory ex-showroom price for its petrol versions ranges from Rs 559,000 to Rs 689,000. City ZX is in a different sub-segment with the floor price being close to Rs 700,000. The sales of the City range in Honda's global product basket is largely driven by India, said an official associated with Honda Siel.
City ZX's styling has been modified on the basis of the feedback Honda had received from its customers in India. Its launch in India is taking place almost simultaneously with other parts of Asia, said a Honda press release.
The highlight of City ZX's launch is the introduction of a variant with a 1.5 litre variable valve timing and lift electronic control engine.
The 'C' segment car has contributed about 10 per cent to 12 per cent of the volume of passenger cars sold in India, said a Honda official. In the first seven months of 2005-06, 488,000 cars were sold in the country, a growth rate of 6.38 per cent over the corresponding period of the previous year.
The diesel engine cars in the 'C' segment make up about 12 per cent of the total sales, said a Honda official. Though Honda has diesel engine cars in its global portfolio, Saharia said that diesel engine variants of City ZX were unlikely to be introduced.
A study by Honda Siel showed that a diesel variant is unlikely to be a viable product now, he added.
Following the launch of City ZX, Honda Siel expects to sell about 17,000 units in the remaining four months of the financial year, said Saharia. City's total sales will touch 37,000 units by March 2006, he added.