Honda will strive to introduce a small car with a competitive price

HONDA HAS TODAY revealed its New Small Concept ahead of this week’s Delhi Auto Expo before a production version launches in India in 2011.

Set to sell for less than AU$12,000, the small five-seater family car - to be based on the New Small Concept - is being developed specifically for India and other emerging markets.

“Honda will strive to introduce a small car with a competitive price in the entry level of the hatchback segment,” Koichi Kondo, Honda Executive Vice President said.

To keep costs down, the Japanese carmaker is working to secure local production and parts supply in India.

Focusing on the Indian market, Honda’s New Small Concept will compete with Volkswagen and Maruti Suzuki, along with new models from Toyota and Nissan.

Toyota’s upcoming Entry Family Car, destined for India along with Russia and Latin America, is expected to sell for under AU$10,000.

Toyota, the world’s biggest carmaker, said it plans to begin production of the new car in India late next year, with Brazilian production due in 2011.

In a market dominated by the likes of Maruti Suzuki, Honda currently markets itself as a premium brand in India, selling 58,285 cars in 2009 and holding 2.9 percent of the market.