The benefit of the excise duty cut from 24 per cent to 14 per cent will be proportional to the localisation content. While the average price of a non hybrid Civic is pegged at Rs 12 lakhs, Honda says the price of the Civic hybrid is yet to be finalised. The hybrid variant is 60 % more fuel efficient. The company has not indicated sales number for the new car.

By the last quarter of 2009 the maker of premium cars will introduced its  hatch back compact car - Jazz - in the country.

Today, Honda launched the eighth generation bestselling Accord which the company says is a luxury car that sits in the upper end of the A5 premium segment in SIAM's classification where Toyota's Camry, and Skoda's Laura are listed. While the premium segment grew by 6% last year, the auto major expects this segment to post double digit growth during this year.

Speaking on the launch of the Accord, Masahiro Takedagawa ,President & CEO, Honda Siel Cars said, "The eighth generation Accord is an epoch making innovation. It offers tangible benefits to customers". The new generation Accord was launched in the US in December 2007.

Since the introduction of Accord in India in 2001, the auto maker has sold 16,000 units of the model and is rated the number one premium car & SUV manufacturer in the country.

While the company sold about 3000 Accords last year, the sales target for the new eighth generation Accord this year will be a tad higher. The new generation Accord comes in 3 variants - Accord 2.4, Accord 2.4 Elegance, and Accord 2.4 Inspire - and are available in the manual & automatic transmission variants and priced between Rs 16.49 lakhs - Rs 18.14 lakhs.

The eighth generation Accord sporting a 2.4 DOHC  i-VTEC engine has a localisation content of 35% and is longer and wider and more spacious than its predecessors.

"The new Accord is a larger vehicle and has improved manoeuvrability. It is as nimble as a small car yet more muscular in its looks," said Jnaneswar Sen, Sr General Manager, Honda Siel