Honda City hybrid price cut likely as localisation talks

You may have heard it before but if you haven’t, Honda’s e:HEV strong hybrid powertrain is regarded to be superior to the ones already on sale in the Indian market. What makes it lag behind is its obnoxious price since it is brought to the market as a direct import. Things are set to change since Honda Cars India has confirmed its plan to localise the hybrid powertrain, enabling the carmaker to restructure its pricing. As a result, we can expect the Honda City e:HEV hybrid prices to go down in the future. Read on to know more about Honda's localisation plans and future lineup of cars and SUVs.

Localised Honda hybrids incoming

Honda was the first carmaker in India to introduce a strong hybrid powertrain option at a relatively affordable price tag, given that its prior hybrid cars were way beyond the reach of an average consumer. However, at Rs 20.50 lakh ex-showroom, the Honda City e:HEV hybrid is rather pricey. Spec to spec, the City hybrid commands a premium of 4.15 lakh over the City petrol CVT, making it close to an illogical upgrade. For instance, Maruti Suzuki Grand Vitara hybrid commands around Rs 3 lakh premium over the petrol automatic variant, thanks to localisation.

Also Read: MG Motor India confirms four luxury cars by 2026 — To go on sale via 12 MG Select dealerships

Similarly, Honda will hugely benefit from localisation since a lower price tag will bring more sales while also helping the brand achieve the upcoming CAFE-III norms. The upcoming Honda Elevate EV will play a big role in complying with the CAFE-III norms, as other hybrid and electric models from Honda in the future. In an interaction with Autocar India, Takuya Tsumura, Honda Cars India president and CEO, said, “At this moment, we are thinking about the strong hybrid. There will be a plug-in hybrid option in specific markets, which is costly in India. We have to consider what is the best fit in India’s context, and at present, it is strong hybrids.”

Upcoming Honda cars in India

At the launch of the Honda Amaze, the Japanese carmaker committed to launch 3 new cars in the Indian market. We already know that one of three is going to be the Elevate EV, which is slated for 2026 launch. While details of the remaining models are unknown, we know that the upcoming models will either boast hybrid or electric propulsion. 

Also Read: Upcoming Skoda cars at the Bharat Mobility Auto Expo 2025

To stay updated with all happenings and developments in the automotive world and be a part of interesting auto discussions and more, join our official AUTOVERSE Whatsapp community (click here to join).