Honda Suspends Jazz Output in India to Launch Amaze

Honda Motor Co. says it will stop producing its slow-selling Jazz premium hatchback this month at its plant near New Delhi.

The move will make room at the factory for Honda's first diesel-powered offering in India, the entry-level Amaze compact sedan. The car is a variant of Honda's Brio small hatchback developed for emerging markets. The company intends to eventually launch a gasoline version of the Amaze.

The Amaze is the first step in Honda's plan to overhaul its India lineup over the next two to three years. Every new model will be offered with a diesel engine option.

Honda doesn't plan to resume making the Jazz until the next generation of the car arrives early next year. The company has sold only 23,000 units of the current-generation five-seater since its launch in 2009, despite a hefty price cut in 2011.