The company is launching two special anniversary `City' models in limited numbers to commemorate the 50th anniversary of the $45.4-billion Honda Motor Company of Japan.

Speaking at a press conference to announce the launch here on Friday night, HSCI president and chief executive officer Teruo Fujisaki said, "India is a dynamic, evolving market and we have to study the market closely to finalise the model. So at this moment, I would not be able to comment on the model. Honda has, in its stable, models in every segment and we will find the best product to address the needs of the Indian market," he added.

The first special anniversary model -- City 1.3 LXi with added features -- was made available on Saturday. The car, only 150 units of which would be produced, is available in a sebring silver colour with bodycoloured bumpers, stereo system, body cover, a digital clock and a 50th anniversary logo among other things. The company has decided to maintain price at the existing Rs 5.9 lakh (ex-showroom Delhi).

The second special model -- City 1.5 EXi-S -- is dearer by Rs 20,000 at Rs 7.93 lakh (ex-showroom Delhi) and comes in maharaja gold colour with a superior stereo system with remote, keyless entry, a gold emblem set and a 50th anniversary logo. Only 150 units of the special model would be produced, Fujisaki said. The car will be launched on November 1.

Honda Motor Company was founded on September 24, 1948, and has made inroads into the Indian market with its generators, scooters, motorcycles and cars through different joint ventures.

He said that the company has no plans to introduce a diesel version for the City. "Diesel cars are more polluting and customers in the segment prefer petrol-driven cars. So we are not looking at introducing a diesel version at all."

"We have already initiated a feasibilitystudy to finalise the segment in which the new model will be rolled out. We are looking at all segments, which includes a small car,'' the sources said.

Pledging the company's commitment to India, Fujisaki said the company has sold 5,520 units of City through its 11 authorised dealers till August. The company has captured a cumulative market share of 21.4 per cent in the mid-size segment, being second only to Maruti Esteem. HSCI plans to increase the network to 20 dealers across 17 cities by the year-end. On the equity restructuring, Fujisaki said Honda Motor Company is infusing Rs 180 crore into HSCI and hiking its stake in the joint venture company from the existing 90 per cent to 95 per cent. The authorised capital of the joint venture company is being increased from the present Rs 180 crore to Rs 360 crore.

The equity restructuring is being effected as a result of the enhancement in the authorised capital of the company. SIEL, its Indian partner has the option to bring in Rs 54 crore over the next twoyears and buy back the equity.

Pursuant to the restructuring, Honda would control 80 per cent stake in the company and SIEL will hold the balance.

Siddharth Shriram, promoter of SIEL, said that the foreign partner Honda is pumping in more money to meet the $50-million policy guideline. Investments to the tune of Rs 450 crore have already been made in the company and a total Rs 850 crore would flow into the company within five to six years. The company has already achieved 57 per cent localisation in its cars and will touch 70 per cent within a year.

On HMC's decision to sell off its stake in its scooter manufacturing joint venture Kinetic Honda, he said that the decision was taken mutually looking at the market conditions. He further pointed out that there were no plans as yet to commence manufacture of scooters through its second joint venture, Hero Honda.