Honda To Roll Out Diesel-Fueled Civic Down Under

TOKYO (Nikkei)--Honda Motor Co. (7267) will start offering a diesel-powered Civic in Australia next month, shipping the vehicle from a U.K. factory.

The automaker hopes introducing its first diesel car Down Under will help spark demand and boost its sales there to around 50,000 vehicles a year.

The five-door hatchback version is the same as the new Civic offered in Europe and features a 1.6-liter engine combined with a turbocharger. It can run 100km on 4 liters of fuel and emits just 105 grams per kilometer of carbon dioxide.

Honda, which has lagged behind rivals in diesel engine development, came up with a compact engine and installed it in the Civic model designed for the European market in January. The engine will also be included in the Brio subcompact debuting in India this spring.

Honda's Australian sales increased 19% to 35,814 units in 2012, but were still off 40% from the 2007 tally. Diesel cars are growing popular there amid rising gasoline prices.

(The Nikkei Business Daily, March 22 edition)

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