Honda to sell compact cars costing Rs 5 lakhs in India by 2011

New Delhi, Jan 5 (ANI): Japan' Honda Motor Co declared on Tuesday that it would begin the sale of its new compact car in India in 2011 at a price less than Rs 5,00,000.

Honda Motor Co's five-seater family car based on the 'Honda New Small Concept' will be unveiled at the Delhi Auto Expo on Tuesday, and is being built with the prime motive of catering to the needs of India and other emerging markets.

Japan's No.2 automaker said it would aim to offer the model at 'affordable' price, by leveraging its global parts sourcing network.

"That's our new small car concept...and we plan to launch it in India in 2011," said Gyaneshwar Sen, General Manager, Marketing, Honda Siel, a joint venture between Japan's Honda and India's Siel.

Honda would price this new car at less than Rs 5,00,000 ($10,823), said Honda Motor Co Executive Vice President Koichi Kondo.

Honda officials added that the company would further increase local procurement in India to price the car attractively for Indian customers.

Japanese rivals Toyota Motor Corp and Nissan Motor Co are also planning their own entry-level cars in India, with production scheduled to begin in 2010. (ANI)