Honda small car in India in 2-3 yrs

Honda Motor Company will introduce a premium hatchback in the Indian market in the next 2-3 years as it eyes sales of 1.5 lakh units by 2010, a senior company official said today.

"The small car, which will be a premium hatchback, is likely to be out in India in the next 2-3 yrs," Masahiro Takedagawa, President and CEO of Honda's Indian joint venture Honda Siel Cars India (HSCI), said today.

Takedagawa said the premium hatchback would be "an all-new car, which is currently under development."

On being asked whether the car was being developed specifically for the Indian market, he said: "India would be the lead country though the car will also be sold in other markets. However, we will consider Indian infrastructure and localisation plan while developing it."

Takedagawa said the company would go for a new plant, which would require investments of around $200 million from its side.