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Source : Economic Times, 13th July, 2007

FASTEN your seatbelts for some more action in the mid-size car segment. Japanese automaker Honda, which has so far maintained leadership in the C-segment with its City model, is all set to vroom in the next generation City in 2008.The segment has seen a lot of action lately and a new car will spoil customers with more choices.

According to vendor sources, the new generation City will be strapped with a new engine which would be more powerful than the current V-tech engine. “The engine would be more powerful than the City’s current engine and would be churning out about 90PS (a German term used to denote vehicle power). It would also be high on fuel efficiency,” said the source.

A Mumbai-based auto analyst confirmed that a global revamp was on the cards.”The new Honda City is being revamped in the international markets next year. This revamped City is likely to come into the Indian markets too,” the auto analyst said. According to industry sources, Honda Siel Cars India (HSCI) will roll out its new Honda City in October 2008. “With this new engine change, this car is also likely to be priced higher than the current market price,” vendor sources added. Honda City is now available in the Rs 7-8 lakh range (ex-showroom Delhi).

In an e-mail to ET , HSCI’s official spokesperson said, “The Honda City available in India is the only Honda City currently available globally. HSCI has no plans of introducing a new-generation City in India in the year 2008. There is no newgeneration City as of now. However, the company spokesperson went on to add that, “All issues related to the product are decided at Honda Motor, Japan.”

In the first quarter of this year, the mid-size segment grew by about 5% selling 52,626 units as compared to last year. Post the launch of Maruti’s SX4 in May this year, the market leader Honda City took a beating. Although the car has now reclaimed its leadership position, a revamped Honda City in 2008 could heat up the market next year. The other players in the segment include the Ford Fiesta and the Hyundai Verna.

Dont they mean that the new engine will be more powerful than the current i-Dsi Engine???

Does that mean that Gxi with Vtec engine is just a rumour?

Whatever it is, it will be nice to see it compete with Linea/SX4 churning out 90 BHP in multijet guise.

If they increase it price, the SX4 will become more VFM assuming its price stays constant

It won't ! It'll go down :) with MUL discounts.
MUL loves giving discounts - they even gave discounts on Swifts. Now more so after the swift diesels came in.
Once the SX4 diesel is launched - they'll surely give freebies with the petrol versions.

Honda normally revamps models in 3-5 years. The city will be 4yrs next year, so even if Honda denies this, a new model does seem to be logical.

Oh my lovely iDSI...don't go away.

Though the BHPeans find this engine boring, I really love the low end torque which is amazing and the marvellous fuel efficiency. Though I don't bother going much beyond 130kmph, I invariably hit 140kmph on the expressway and iDSI is reaaly good enough for me.

And if the new City will come in October 2008, petrol may be costing around Rs.70/liter.

I hope the good sence will prevail at Honda and so will iDSI....
Unless they have a more powerful at the same time more more frugal engine by that time...

There is an impending price rise for the SX4 petrol.Maruti is just waiting to clear itself from the present mess they are in.Also they are waiting for honda response expected this diwali,so in all probability sx4 prices will increase by this Diwali.
This is what was told to me by some folks in Maruti.

Hope they give abs and airbags as standard in the new city and 4 wheel disc brakes

Who is going to wait till Oct'08, Talk about Action right now !!! By then I suppose we will have at least 10 more cars in that price bracket to decide among. What say friends ?

And yes, SX4 is probably going to release their diesel sometime later his year which is going to detroy the competetion altogether, HYUNDAI are you listening ?

Honda have lost it, planing to launch the New City and increase the price of a already over priced product? What next, City will cost as much as the Civic, and Civic as much as the Accord and Accord as much as the new CRV and CRV... . :eek:

Let Honda get any car model in India, the competitors with their diesel engines have Honda quite well covered. Remember one thing, GM-DAT's first diesel is the Magnum and that was since diesel sales in India is growing they had to take that step, wheras Honda have a brilliant 2.2CTDi but i dont know what's stopping them.

The new car will have 88bhp IDSi, which is sold in Malysia in the current NHC, though Honda is planing to do away with the IDSi and give Vtec in all variants.

What ever the matter is once SX4 DDIS is launched the City is in a BIG BIG SOUP.

I think they need sulphur free diesel[I may be wrong].Also they did talk about fuel quality not being good enough here for their diesel range.

Honda is planning to go big with regards to diesel and we will see a few other diesel engines in their stable.Most probably for their minivans and suv's first and then their cars. However as far as India is concerned don't know their plans.

honda in all markets are not volume players...they sell cars at a premium, make more money and heavily control the resale value also by various strategies in the market

im sure, honda would not be seing the opportunity in india and not launching diesel variants without a purpose...

5 years is the typical product lifecycle of Honda. Considering that the NHC was launched in end-2003 (or was it start 2004), a replacement is inevitable in the next 18 months.

I just hope it doesnt look as weird as the current gen. Many people have accepted it, but an equal amount have rejected it based on the looks alone.

I most certainly am one of 'em. Tis a great car but looks like a wuss. :)

Yes, Honda clarified in a letter to the editor in ACI that this is just a rumour.