The car was an instant hit upon launch in India. The concept of a premium sedan with plush interiors appealed to Indian car buyers. The VTEC engine garnered the reputation of an excellent performer. The City struck a perfect balance between comfort, performance and styling. The models popularity became synonymous with the Honda brand.
Honda had to re-look its strategy keeping in mind the popularity of diesel cars in India. Most manufacturers have now begun offering diesel alternatives for their popular models. The lack of a City diesel variant contributed to its drop in popularity. Cars like Verna, Rapid and Sunny started gaining momentum and began to challenge City's domination in the C+ segment.
