“It has been our policy to revamp our existing products every 4-5 years to fit in improved and modern technology and work on the next generation Jazz is on. We have not zeroed in on the product that we will launch as our entry into the B segment here but Jazz is an option we would look at,” Honda Siel Cars India president and CEO Masahiro Takedagawa said.

The five door hatchback car was launched as “Fit” in Japan in June 2001 and has four engine variants from Honda’s L series. The new car is readied for a global launch at the end of this year while the company’s small car in India would be launched in 2009. The new car could be the one with the 1.2 litre engine and a marginally shorter length of 3.8 mm.

“The decision to enter the small car segment was based on the trends in the market which indicate that aided by the excise concessions announced last year, the B segment is set to witness high growth. Our small car in India will be a global product that will have a presence all over the world,” Takedagawa added.

Meanwhile, the company will continue refreshing its existing models and Takedagawa hinted that the new City will take a longer time than expected. “Right now we are concentrating on the Jazz and our new plant but we will continue to upgrade our models every year. We do not have any concrete plans or a timeline for the next generation City but it will happen only after the Jazz is ready,” he said.

With the diesel segments witnessing high growth at the expense of petrol, Honda which does not have diesel in its portfolio yet is hesitant on entering the segment. “The emission norms will get more strict in 2010 with the introduction of Euro IV emission norms and while we do have the technology we are not sure about the quality of diesel available in the country today. Hence we are waiting for the fuel quality to improve and once it happens we will be ready with our products,” Takedagawa said. First to come off the block would be the Honda CR-V diesel.

He, however believed that the situation is still not the same as Europe and Honda is not missing out on an opportunity. “An Indian consumer drives an average 18,000 kilometers per year while a European drives in excess of 40,000 kilometers. The huge gap is due to the difference in infrastructure and diesel is more attractive for those who travel more. The demand here will be much more once infrastructure improves,” he said.