Honda is likely to struggle for another year in the Indian market as their first diesel engine powered is only likely to arrive by 2014.

The company’s sales in India have taken a dive ever since prices of petrol were hiked considerably.

Consumers are increasingly moving to diesel powered cars. In metro cities, CNG and LPG have become another alternative option.

Reports claim that the company might get out of the premium segment of the automotive market in India to focus on budget segment cars.

Honda is likely to start their diesel rollout with a budget sedan based on their Brio small car.

The company said:

In India, an all-new diesel engine will be adopted sequentially to new models starting in FY2014. In addition to the high fuel efficiency, the cost competitiveness of the all-new diesel engine will be enhanced through local sourcing and local production to make new diesel models more affordable for customers.

The company also indicated that existing models would not get diesel engine variants. They are likely to launch updated editions of all their products by the end of next year though.