Honda is ready to introduce its new small car in India in the year 2011. The car has yet not been given a brand name and is for now called Entry Family Car. Honda’s new small car will have 80 percent localized components that will make it extremely cost-competitive in the Indian market. Honda expects to sell its small car as much as its model ‘City’.

"Our new small car, to be launched in 2011, will have a rate of around 80 per cent in localisation of components," Honda Siel Cars India Director (Marketing) Tatsuya Natsume said.

Honda intends to use more localized components in its other models as well. Honda had earlier launched its small car model Jazz in India which failed to generate volumes for the company due to its high price tag. With the use of more localized components in its other models, Honda will be able to make its models more cost competitive. Currently Honda Jazz and City have 75 percent localization and Civic and Accord have 71 and 28 percent localization respectively.