The new small car is likely to have all the necessary features expected from a Honda including airbags, ABS and G-CON body standards, which keep the integrity of the passenger cabin intact in an accident.
Honda's vice-president (marketing) Jnaneswar Sen said, "We surveyed 1,600 people during the recent Auto Expo on what they want from the new car. I can tell you that safety is not down the order."
Honda has decided to price the small car below Rs 500,000 to be able to compete with Maruti Suzuki Swift and Hyundai i20.
"This will be the cheapest Honda anywhere in the world," says Honda director (marketing) Tatsuya Natsume.
The small car will have over 80 per cent local components to save on the cost of spare parts. By the time Honda brings out its small car the market would already have old players like Maruti Suzuki, Hyundai, Tata Motors and General Motors.
Not too far behind are scheduled launches by Volkswagen Polo, Ford Figo and Toyota Etios.
According to Sen, "It's still a small market, given the size of our population. We haven't hit the inflexion point. We should be there in another few years."
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