Though marking Honda's entry into the compact car segment, the Jazz is significantly more expensive than many of its similarly-sized competitors, like the Skoda Fabia, the Hyundai i20, the Maruti Ritz, and the Maruti Swift. But, according to Honda, this has been done intentionally.

"The Jazz in the same platform as the Honda City, but it has a different character," said Takedagawa.

"With the Jazz, we're trying to create a new segment in India. We're trying to break a common stereotype," added Jnaneswar Sen, vice president (marketing), HSCI.

That common stereotype, held by many Indian consumers, is that compact cars cannot be luxurious or up-market. For years, sedans (like Honda's own City model), have dominated India's high-end sales. The average Jazz driver, Honda says, will have the budget to afford a sedan, but will opt for the hatchback for reasons of convenience and practicality.

"You're getting the convenience of a smaller car with all the reliability, comfort and durability that's associated with the Honda brand," Sen explained.