The company introduced Honda City in the country in 1998. India accounts for over 25 per cent of the model's worldwide sales.
"Honda City is our bestseller model in India and the only premium sedan to achieve cumulative sales of 7 lakh units in the country," HCIL President & CEO Yoichiro Ueno said in a statement.
With a strong legacy of four generations, the City brand has evolved with the changing tastes and aspirations of customers, he added.
The company sold 59,378 units of the first generation Honda City from 1998 to 2003. From 2003 to 2008 it sold 1,77,742 units of second generation City.