Honda’s next generation City hasn’t finished its global launch but executives are already commenting on the likelihood of a diesel engine. Honda’s Indian subsidy has confirmed that it is developing a diesel engine for use in small cars like the Honda City. Details are scarce so I’m guessing the engine will probably be a small 1.5 liter turbodiesel. Only time will tell what the engine’s final specifications will be. The engine would probably also find a home in the Honda Fit/Jazz.