Honda unveils small concept car, launch in 2011

Honda said on Tuesday its small car, to be launched in the country by 2011, would be priced below Rs 500,000.

The company is looking at buying steel and electrical components from Indian suppliers for the car to be cost competitive, Honda Motor Co executive vice-president and representative director Koichi Kondo told reporters while unveiling the concept of new small car at the Auto Expo in New Delhi.

"Local procurement of components is needed more now than before to make our small car cost competitive. We are looking to buy steel from Indian suppliers and also other components," Kondo said.

The company said it will launch the car based on this design in India by 2011 and is looking at a price of less than Rs 500,000 for the small car.

"It (the small car) should be less than Rs 5 lakh to be competitive in the market," he said.

Honda currently buys steel from Tata Steel and now they are in talks with other leading Indian steel makers for possible supplies. Besides steel, Honda is also looking at buying electrical components from Indian suppliers.

"Electrical components are something that we are still relying on imports for. We are talking to our Indian suppliers if they can make it for us," Honda Siel Cars India president and CEO Masahiro Takedagawa said.

It would have to be of the desired quality," Takedagawa added.

The company also said it will focus more on hybrid models as part of its global green strategy.

"To meet the increasing global demand for small-sized cars, Honda will introduce an all-new small car based on this design concept in India and in Thailand within 2011," he said, adding, "we are introducing the Honda New Small Concept, which features our all-new small car design concept for the near future."

This is the first time, Honda is showcasing the concept of its new small car anywhere in the world.

"As India is the leading country for small cars, it is only natural that we first unveil our concept in this market," Takedagawa said.

The Honda New Small Concept has been developed at its R&D centre in Japan and is designed to be a family car with a capacity to seat five adult passengers.

The company is also planning to focus more on hybrid and alternative fuel technologies.

As part of this, the company is showcasing the concept of its sporty hybrid car 'CR-Z' at the Expo.

"The CR-Z concept is the world's first hybrid vehicle equipped with a six-speed manual transmission 1.5 litre i-VTEC engine. We also propose Honda's distinctive design concept of future hybrids," Kondo said. HSCI is a joint venture between Honda Motor Co and the Siel group.

Image: Photographers take pictures of Honda's new small concept at the 10th Auto Expo in New Delhi. | Photograph: Adnan Abidi/Reuters