The price cut by Honda seems to have done wonders to the City. The City which had lost its first position in its segment to the Vento and the new Verna from Hyundai has reclaimed that spot with a vengeance in August. It sold 5819 units to the Verna’s 4211 and the Vento’s 3019. And all this without a diesel engine which the other two cars have. What is surprising is the difference margin. So what about the hypothesis that Honda needs diesel engines in order to remain competitive?