The Accord is expected to carry a price tag of around Rs 13 to Rs 14 lakh and is positioned in the D segment which will see a slew of launches, including Hyundai Sonata, from July onwards. "We have decided to manufacture Accord even though it has become attractive to import CBUs as we have enough unutilised capacity in our facility," a senior official of Honda Siel Cars India told The Financial Express.

The Accord, one of Honda's largest selling models worldwide, will start with a low indigenisation level of around 20 per cent.

Sources said that the company expects substantial volumes for the Accord and manufacturing it may be feasible. The company's facility at Greater Noida in Uttar Pradesh has a capacity to manufacture three different models. It sells around 10,000 cars annually.

Honda does not want to be just a mere assembler of cars, but would like to be known as a manufacturer, the official said.

Honda Siel has also made marginal investments in the jigs and fixtures at its manufacturing facility for the Accord.

He added "We are exploring the CBU route for our models in the niche segment, especially the Honda CRV which is a top-of-the-line multi-utility vehicle and a premium luxury car Legend."

Major companies are planning to import cars in the top end of the luxury segment and super premium segment as CBUs vis-a-vis manufacturing cars, as the latter involves huge investments and is not cost feasible.