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Honda launches two variants of City

Our Bureau

NEW DELHI, Aug. 29

HONDA Siel Cars India Ltd (HSCIL) has launched two new variants of its passenger car model - the Honda City. While one of the variants, the Honda City VTEC, will feature Honda's famous VTEC engine, the other variant, the Honda City 1.5 EXi-S, is an plush , luxurious version of the current City.

The Honda City VTEC, which was launched here on Tuesday with a price tag of about Rs. 9.20 lakhs, ex-showroom, will be the first in the industry to sport a VTEC (variable valve timing and lift electronic control) engine.

Announcing the launch here at a conference, Mr. Teruo Fujisaki, President and CEO of HSCIL, said that the VTEC engine combined two different combustion environments, one similar to a racing car engine (high rpm) and the other of a standard passenger car engine (low rpm), thus, overcoming the inherent performance limitations posed by conventional engines.

By toggling the valve settings with the help of an electronic control unit (ECU), VTEC allows two different combustion environments in the same engine. The engine's mechanism makes it possible to change simultaneously the timing and the degree of lift fo r the engine intake and exhaust valves.

According to Mr. Fujisaki, the advanced mechanism of the engine, which, incidentally is used by Honda in its Formula I cars, results in high performance and low fuel consumption.

The 1.5-litre, water-cooled, four-stroke, single overhead camshaft (SOHC), 16 valve, in-line four cylinder engine develops a maximum horsepower (HP) of 106 at 6,800 rpm. The VTEC variant also sports upmarket features such as a high-end, four-speaker aud io system, rear spoiler with an integrated brake light, better upholstery, double-barrel exhaust and wider tyres.

The Honda City 1.5 EXi-S, which is barely Rs. 60,000 less expensive the VTEC variant, is targeted at the upmarket segment of the City buyer. The four-spoke steering wheel, the front centre armrest, all the seat covers as well as the gear-shift knob have been changed to leather finish to give the car a plush interior. The new City 1.5 EXi-S is also fitted with a superior quality Alpine stereo.

HSCIL is targeting sales of 12,000 cars during the current financial year. The company had sold 3,233 units during the first four months ended July this year.

Meanwhile, Siel, the minority equity partner with Honda Motor Company of Japan in HSCIL, has decided not to take additional equity in the joint venture car manufacturer. Talking to newspersons here, Mr. Siddharth Shriram, Chairman of HSCIL and Siel, said that due to the continuing financial difficulties faced by Siel, the offer to take an additional 15 per cent equity in HSCIL would not be exercised by his company.

Siel would have had to pump in an additional Rs. 54 crores for the 15 per cent stake in HSCIL. ``We have mutually agreed that the deadline for subscribing to the additional 15 per cent need not be extended, since Siel's financial position does not allow room for investing the additional funds in acquiring the equity,'' Mr. Shriram said. Siel will continue with the existing five per cent equity stake in HSCIL.

Accord coming next year

HONDA is planning to introduce its best-selling luxury sedan, the Accord, in the country by mid-2001. Company officials said that the timing and viability of introducing the car would depend on the new automobile policy that was expected to be announced by the Government later this year.

``HSCIL is keen on manufacturing the Accord in India and is not looking at the option of importing the car as a completely built unit (CBU) for sale here,'' company officials added. They felt that in spite of the removal of quantitative restrictions (QRs ) by April 2001, the high import duties would make import of CBUs unviable.

The company is also studying the viability of introducing a sports utility vehicle or a multi-purpose vehicle, on the lines of its CR-V. ``We are looking at the market for such a vehicle in India and may include it in our portfolio of offerings by 2002,' ' company officials said.

In the meanwhile, company officials also said that cost pressure on the company was increasing due to the depreciation of the rupee and it had managed to retain prices at current levels due to increased cost savings in other areas. However, the officials added that any further depreciation of the rupee would force the company to hike prices.

Pic.: Mr. T. Fujisaki, President and CEO, Honda Siel Cars India (left), with Mr. Takashi Saitoh, Chief Project Officer, Honda R&D, Japan, at the launch of `Honda City VTEC' in the Capital on Tuesday.

Pic. Credit: Kamal Narang