Leading auto manufacturer Honda Motors planning to launch its new cars in Indian market. According to the company official, Honda plans to launch its small car in Indian market which is expected to hit the Indian roads in 2011-12. With the launch of this new small car company plans to compete other auto manufacturers which currently dominates this segment like Maruti, Hyundai, Tata Motors, Chevrolet and Toyota. Toyota also plans to launch its new cars in Indian market including its small car that might be hit Indian road next year. Currently, this segment is dominated by Maruti Suzuki with over 60% of market share and with seven models in this segment. India's other leading auto manufacturers like Hyundai, Tata motors also have number of models in this segment but Honda doesn't have a small car model in this segment and company looking at new cars in this segment to gain market share in India.

According to the company official the new small car will be powered by the 1.1L, petrol engine and company hopes it could double Honda's volume in India which is currently 52,000 cars per year. It is expected that the Honda's new cars will be rolled out from company's newly stalled manufacturing plant in Rajasthan , where Honda plans to have targeted capacity of one lakh small cars per annum.

However, the company refused to confirm the developments on the new cars and they said that nothing has changed from its earlier stated position. “All plans for the launch of new small car are going on as per the schedule,” the Honda official said.

Sources said, the new small car will compete against the growing tribe of premium hatchback cars like the Maruti Swift, Maruti Ritz, Hyundai i10, Chevrolet Aveo UV-A, Tata Indica, Fiat Punto, Ford Figo and Toyota’s yet to be launched small car. This small car segment is the fastest growing segment in the domestic auto market with over 2.5 lakh cars sold every year.

According to the company official the new small car will be much smaller than Honda Jazz, its other hatchback, but it will be available with an affordable price tag of Rs 4 - 4.5 lakh for the petrol variant.