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Honda new small car, which was showcased at the New Delhi Auto Expo in January 2009, will not be launched in the segment of volume-driven small cars as the company has decided to place it above the highly competitive compact-car segment in India. The Japanese car maker announced on Monday that its proposed hatchback for India is not aimed at the volume-driven small car segment and will be positioned above this category.

According to Mr Fumihiko Ike, Honda Motor Corporation Chief Operating Officer (Asia and Oceania), Honda's small car project is very much on schedule. The company has not decided the likely price or the engine capacity of the small car, but the small car will be positioned slightly higher than the volume market.

The company had showcased a concept of this car at the New Delhi Auto Expo where it was named as 'Honda New Small Car Concept'. At that time, the company had announced that the car will be launched in India by year 2011. When asked about the possibility of launch of a diesel engine, Mr Ike said that Globally the company has diesel engines of higher specifications and now it is developing diesel engine with lower specification also, but it is basically for the European market.

The price segment of Rs 2 to 4 lakh is generally represents the volume-driven segment in India which accounts for the most of the passenger car sales in the Indian market. Currently, more then half a dozen popular cars are there in this segment which includes best-selling Maruti Alto, Wagon R and A-Star, Chevrolet Beat and Spark, and Hyundai Santro Xing and i10.

Honda India has some of the most popular casino en linea cars in its Indian portfolio including premium hatch-back Honda Jazz, sedans Honda City and Civic, and luxury SUV Honda CR-V. The company however, has reported a decline of 2.13 per cent in its sales to 3,578 units, in April 2010.
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