Honda to phase out City on launch of new variant

Honda Siel Cars India (HSCI) will phase out its existing Honda City simultaneously with the launch of the new variant of the car, the City ZX, in November, say senior company officials.

"Honda India will phase out the existing Honda City on the launch of the City ZX in November. We hope to generate sales of 17,000 ZXs in the initial five months of its launch," said Rajive Saharia, general manager, marketing, Honda Siel Cars India.

The existing variant was launched in October 2003, and is among one of the best selling cars in the sedan segment in the industry.

The company has sold around 20,000 Honda City cars in the first six months of the current financial year. HSCI hopes to sell about 37,000-40,000 Honda City cars during the current financial year as against 32,600 cars sold in the previous corresponding period. Honda sells about 3,000 Accord and 2,400 CR-Vs a year.

The company is bullish about its growth plans and is planning to expand its dealership network to 100 in another 4-5 years from the current 43, said Saharia.

The company's focus would be over expanding in the B class towns and cities of the country, he said. HSCI will be expanding its capacity in India to 1,00,000 cars by 2010.

By November, the company will complete the first round of the company's capacity expansion to 50,000 from the previous 30,000 cars. The next high profile launch for the company would be the Civic in 2006.

City ZX includes four variants - EXi, GXi, CVT (automatic transmission) and VTEC. While EXi, GXi and CVT variants come with the advanced combustion system of the 1.5 litre Intelligent Dual and Sequential Ignition (i-DSI) engine, City VTEC embodies a 1.5 litre VTEC (Variable Valve Timing and Lift Electronic Control) engine.

City ZX VTEC is premier in design, exteriors, interiors and technology compared to the existing City.

Accordingly, the car is priced Rs 80,000 higher than the current Honda City. EXi, GXi and CVT would be priced at Rs 18,000-Rs 30,000 premium from the existing City.

POWERING ON

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• Honda to launch City ZX in Nov
• The company expects to sell 17,000 units of new variant
• Dealerships to be raised to 100 from the current 43 in 4-5 years