Honda to export diesel engine components from India

Honda Cars India Ltd will export diesel engine components to Asian and European markets from India, besides lining up 3-4 new models of cars with diesel engines to boost its sales.

"We will export diesel engine components to Europe and South East Asian markets from India. This fiscal, the target is Rs 500 crore against Rs 332 crore registered in 2012-13," Honda Cars India SVP Jnaneswar Sen said here today at the launch of its new sedan, Amaze, in the city.

Sen said the company remains optimistic about the success story of diesel cars.

Though the decision to remove the subsidies on diesel by India took us by surprise but demand for diesel cars will continue, he said.

Sen said the four new models in compact SUV -- seven seater MPV, new Jazz and new City -- expected to be launched in the next 2-3 years, may be introduced with 1.5 or 1.6 litre diesel engines along with petrol variant.

He did not wish to predict on the volatile car market, but said the capacity of the company in India will double to 2.4 lakh units with the new Rajasthan plant built at a cost of Rs 2,500 crore, which is expected to become operational by mid 2014.