While at point of time, Japanese automakers like Honda & Toyota were believe to be interested in only the gasoline technology, the times have changed now. It is believed that both the giants are now working to develop diesel engines for the Indian market to generate future growth.

As players like Maruti Suzuki and Hyundai are spending more money on building and marketing diesel cars across the Indian market, experts believe that the diesel cars will play a major role in the ongoing volumes war among the automakers. It may be noted here that while Toyota still has diesel technology for its products like Fortuner, Innova and Land Cruiser.

However Honda, which has only petrol-powered vehicles in its portfolio in the country, is also working on a plan to develop a smaller diesel engine for its products. However, Toyota is also expected to launch the diesel version of Corolla Altis that will mark the entry of the first diesel passenger car from Toyota in the Indian market. Jnaneswar Sen, vice president (marketing), Honda Siel said that the company has still to finalise which cars will the diesel engine power but there is certainly a need for the diesel engine for Honda in India.