It had earlier been rumored that the auto major’s Indian arm Honda Siel Cars India was planning to hit the road with the new Jazz. However, plans seem to have shifted gear and the company is reportedly lining up two models – a new small car based on a new platform and a small car based on the Jazz platform.

The company plans to position the two vehicles in two different categories. While the new small car would compete with the Maruti Alto / 800, the Jazz-based model will take on the Suzuki Swift, Hyundai Getz and Chevrolet Aveo UVA, said a report. The company is busy shaping the two cars at its new manufacturing base at Tapukara in Rajasthan. The company is expected to lift the wraps off the two models by year 2009. Honda Siel might spring a surprise in the market by rolling out both the models side by side.

Meanwhile, a statement from Honda Motors chairman Satoshi Aoki has come as a surprise, which said that he had doubts whether a budget car could come for just $3,000. Making a dig at the plans by rivals Tata Motors and the Renault-Nissan-Mahindra combine, he said Honda did not have any plans to join the race for making such a low-cost vehicle.

A report said that Aoki had commented that developing such a low-price vehicle would be out of range for Honda. He, however, added that Honda was working on small car projects, though not low-priced, for emerging markets. He added that such models are only in the research phase. The company will have to achieve costs and have a good balance between cost and business worthiness before it decides on any such projects, he added.

So where does that leave the new two little beauties waiting to be hatched at the Tapukara manufacturing plant? It is likely that Honda may come out with small cars but they may not be low-priced.

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