The vehicle will feature either a 1.2-liter gasoline engine or a 1.5-liter diesel engine.

Speaking to reporters in Tapukara (Rajasthan), Honda Co-Chairman Fatoshi Aoki also said that he thought a US$3,000 car for the market—as announced by Renault-Nissan—“out of range” for Honda.

He said the company would have to see if it would be a viable option to develop such a cheap car.

“We cannot just make a small car without Honda-like characteristics,” Aoki said at the foundation stone laying ceremony of the second plant of its Indian subsidiary, Honda Siel car India.

Aoki said Honda’s with the small car would be to cater to the Indian market first.