New Delhi, Sept. 11: Honda Siel Cars India is betting big on the festive season despite high interest rates.

“High interest rates have affected our sales to an extent. But with festivals round the corner, we hope sales will go up,” said Masahiro Takedagawa, CEO and president of Honda Siel Cars India.

The company today launched variants of the Honda City, priced between Rs 6.80 lakh and Rs 8.65 lakh (ex-showroom Delhi), to celebrate its 10th year in India.

Except for the Vtec variant, the remaining three will be costlier by Rs 3,000. VTEC (variable valve timing and lift electronic control) is a system developed by Honda to improve the efficiency of a four-stroke internal combustion engine

The company’s sales declined in August to 4,469 units against 5,126 units in the corresponding month a year ago.

Takedagawa said the company’s production was hit by the expansion programme at its Greater Noida plant. The company will shut the plant for another 10 days in November.

The company, which produces 60,000 units per month, is expanding its capacity to one lakh units. It is eyeing about a 17 per cent rise in sales this fiscal at about 70,000 units against 60,000 in the previous year, said Takedagawa.

On the company’s plans to bring diesel engine cars in India, he said, “Globally, Honda has only one diesel engine in Europe and importing it would be an expensive proposition.”