The new series will include increased body length, enhanced upholstery, re-designed fender and suspensions, wider front bumper, broader front grille, larger tail lights, superior audio system, and upgraded air-condition systems.

Officials said the company has spent on an average an additional Rs 50,000 on each car for upgradation. However, it will pass on just about Rs 10,000 to customers, the officials added. The company has stopped production of the earlier series. The price hike ranges between 1.8 and 2.8 per cent. Speaking to The Financial Express, Honda Siel Cars India (HSCI) president T Fujisaki said the modifications in the new series are based on market studies and feedback received from customers.

The company has no plans to launch diesel versions of the Honda City cars in India, Fujisaki said. On the launch of new models in the Indian market, Fujisaki said the company is undertaking a study, and will take a decision in due course. He said the company has not given up plans to import completely built units of the Accord model. The Government is yet to give approval to direct imports by any manufacturer.

The company may still pursue the import route by encouraging dealers to import models directly, officials said. Fujisaki said the company has invested around Rs 450 crore in the present project, and as per its long-term business plan, it may invest another Rs 400 crore over the next four years in localisation efforts and development of new models in the Indian market.

Fujisaki said the company has been able to cut the losses over the last one year. In the first six months of the current fiscal, the losses were around Rs 20 crore, compared with Rs 30 crore in the same period last year. The accumulated losses of the company stand at Rs 90 crore, he said.The company plans to export the City to neighbouring countries, including Sri Lanka, Bangladesh, and Nepal.

Honda Siel Cars India Ltd is a joint venture between Honda Motor Company of Japan and Siel Ltd, with the Japanese major owning 80 per cent stake.