The company had discontinued the third-generation model of the car in November. The fourth generation of the sedan was unveiled globally on November 25.
Diesel variants of the new City will retail from Rs 8.62 lakh to Rs 11.1 lakh, while petrol versions are priced between Rs 7.42 lakh and Rs 10.98 lakh (ex-showroom Delhi).
"With the best of both petrol and diesel technologies available in Honda City, we are very confident about the success of the model, which will significantly contribute to our business growth in India," Honda Cars India Ltd (HCIL) President and CEO Hironori Kanayama told reporters here.
The petrol variant of the new Honda City comes with the existing 1.5 litre iVTEC engine, while the diesel version sports the recently launched 1.5 iDTEC diesel motor.
The new City was developed at the Honda R&D Centre in Tochigi, Japan, following extensive market surveys in India and the ASEAN countries.
HCIL's other models include the compact sedan Amaze and hatchback Brio. The Honda Amaze, introduced in April last year, was the company's first diesel offering in India.
It sold 73,OOO units in 2012-13 and aims to market 1.2 lakh cars this financial year on the back of new launches.
The company had launched the first-generation Honda City in India in 1998 and has so far sold 4.3 lakh units of the car.