Honda Cars India Ltd (HCIL) on Thursday said its best selling sedan City has reached another milestone in its journey in India.

It said the fourth generation Honda City has achieved a sales volume of over 2.5 lakh units, making it the best-selling City ever from Honda, the company said in a statement.

The fourth generation City , which was launched in January 2014, set a new benchmark with an all-new i-DTEC diesel engine and a new-generation CVT transmission technology. The model also witnessed tremendous change in customers' preferences, with over 30 per cent opting for the the fuel-efficient CVT variant, the company said.

“The Honda City is an important pillar of Honda’s business and success in India. With its new-generation technologies, the fourth generation City meets our customers’ aspirations for a premium product. It is also testimony to our commitment to bring the best models and technologies for our customers in India," Yoichiro Ueno, President and Chief Executive Officer, Honda Cars India, said.

The Honda City's first model was launched in January 1998. Cumulatively, Honda City achieved sales of more than 6.8 lakh units in the Indian market, making it a segment leader.

India is the largest and most important market for the Honda City and accounts for over 25 per cent of City’s worldwide sales, the company said.

Globally, the Honda City has registered cumulative sales of over 3.5 million units in more than 60 countries. Of this, over 1 million units are attributed to the fourth generation City.

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