Japanese carmaker Honda Motor Company (HMC) is planning to introduce the much-awaited diesel engines in a new entry-level sedan based on its Brio compact car by the next fiscal year to boost car sales in the Indian market.

The new Brio sedan would be on lines of the successful Swift-DZire, Polo-Vento and Fabia-Rapid combo, where the sedan models were created on the popular hatchback platform. Honda wants to replicate the same initiative to improve its sales in India along with added advantage of a new diesel engine.

Honda's global CEO HMC Takanobu Ito said in his speech in Tokyo, "In India, an all-new diesel engine will be adopted sequentially to new models starting in FY2014. In addition to the high fuel efficiency, the cost competitiveness of the all-new diesel engine will be enhanced through local sourcing and local production to make new diesel models more affordable for customers."

The company will not introduce diesel engines in any of the existing cars like City, Jazz or Brio, but would add them to the new line of cars expected to come by end of next fiscal year.

Honda announced an all new Jazz (Fit) series to debut globally sometime in 2013 that would subsequently be introduced in India.