Japanese auto maker Honda Motor Company is working on its expansion plans in India. It intends to launch a specific small car for the Asian markets. The new small car will be placed in A-segment but will not compete with Nano. "We don't have any plan for ultra low-cost car. We are still undergoing tough times in many traditional markets," Honda Chief Executive Takanobu Ito said. "Our top priority is on China and India, where we would like to grow the size of our business as much as possible," he added.

Honda is eyeing India and China as its top markets where it intends to book profits earlier than the rest of the world. It sold 50,600 cars in China in October which is up 42 per cent from the previous year. India is a smaller market. Honda sold 34,430 cars between April and October, an increase of 38 per cent from a year earlier.

Honda has premium sedans in India like Accord, City and Civic. It launched premium hatch model Jazz earlier this year. However, its second car model will be more competitive and at “expected and accepted” price levels of Indian customers.