Why Is Honda Discontinuing Its Diesel Segment in India?

Posted on: Dec 1, 2022 | | Written by:

Why Is Honda Discontinuing Its Diesel Segment in India?

Published on November 30, 2022. EST READ TIME: 4 minutes

Honda began its diesel venture with the Amaze in 2013. It was a sub-compact sedan, and its 1.5 -liter engine (diesel) powered many Honda cars. It is still doing its best on the fifth-gen WR-V, Amaze, and City. However, reports suggest that Honda will discontinue its diesel segment in India. The Japanese automaker plans to discontinue diesel vehicles next year onwards in order to meet the latest emission norms.

Why is Honda discontinuing?

Reports suggest Honda will discontinue the diesel engines because it will be challenging to meet the Real Driving Emissions (RDE) norms which will soon be in place. CEO and president of Honda Cars India, Takuya Tsumura, said it would be challenging to clear the RDE with diesel. He added that most brands in Europe also could not continue with it. The same thing is happening in India, and they are not overthinking diesel now.

Government's Stringent Regime

CAFE 2 (Corporate Average Fuel Economy 2) guidelines and RDE norms will run rampant from 2023. The CAFE 2 norms say that cars must achieve real-world emission goals mandatorily, not just in lab environments. The Real Driving Emissions (RDE) norms start in April 2023, and the vehicles will have a self-diagnostic device called OBD2. It will make it harder for automakers to comply with emission limits with diesel vehicles. But do not forget about getting a Honda car insurance amidst this. A car insurance is equally important. Get comprehensive car insurance for your Honda from HDFC Ergo right away!

Impact of Diesel on the Environment

The diesel engines that are manufactured today are the cleanest of all time. However, due to the engine's capacity to work for over 30 years, many dirtier and older engines are still in use. It is essential to reduce exposure to diesel exhaust for the environment. Diesel engine emissions produce ground-level ozone. It damages vegetation, trees, and crops. It also causes acid rain, affecting lakes, soil, and streams. It enters the human food chain through fish, meat, produce, and water. The emissions also lead to reduced visibility and property damage. In turn, greenhouse gases from diesel engines affect the climate, affecting sea levels, agriculture, ecosystems, water quality, and weather patterns. Reduction of greenhouse emissions from these engines by idle reduction or fuel economy strategies would address climate change, improve energy security, and result in a more robust economy. The health hazards are many, and working to reduce them is a step forward.

Current Offerings

Honda currently has Honda City in sedans, Amaze in a compact sedan, and WR-V in crossovers. All these use a 1.5-liter i-DTEC, all-aluminum turbo engine, which produces up to 98.6 bhp power and 200 Nm torque. Honda has around 90% share in diesel in the different powertrains in its lineup, and it's been reducing. It will continue to sell diesel variants for some time, and once RDE is implemented, the share will further decrease. Honda is currently gauging which powertrain they should focus on in the future. Honda currently has Jazz, WR-V, Amaze, fifth-generation City, and e: HEV in its Indian portfolio. Honda City e: HEV hybrid sedan came out earlier this year with a 26.50 km/liter fuel economy. Honda will not produce WR-V, fourth-generation City, and Jazz by March 2023. Instead, it will launch a brand-new SUV in 2023.

Focus on Electric Vehicles

While Honda is considering discontinuing its diesel variants, it is also working on introducing and expanding its electric vehicle segment. It will soon launch a hybrid car that would self-charge. Expanding their electric vehicle offerings is essential as they would only be left with petrol and hybrid vehicles once diesel is discontinued.

Conclusion

The government in India has actively been promoting EVs by providing customers and manufacturers with subsidies under the Production Linked Incentive (PLI) Schemes. It is a good idea for Honda to rethink its strategy. However, the Japanese automaker is one of many automakers that would change its strategy. Reports suggest Skoda Superb and Octavia will be discontinued due to RDE norms from the coming year. The Indian government jumped from BS4 to BS6 norms directly because of the air quality in India.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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