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Japanese carmaker Honda has started the groundwork for the launch of its premium small car, Fit, in India.
The Fit, which the company claims is Japan's largest selling car this year, will be launched in 2004, and Honda has initiated market research for the purpose.
"We are inviting customer response to Fit through direct mailers and internal communication," a company official said.
Fit, a new sub-compact car, boasts of some of the latest technologies in automotive engineering. It recently beat the Toyota Corolla to emerge as the leading model in the Japanese market.
In Japan, the car sports an i-DSI (dual and sequential ignition) engine that the company claims delivers a fuel efficiency of 23 km per litre.
"This feature has the potential of making the car popular in India, and we are seeking responses from our existing customers," the official said.
The Honda Fit is designed on the company's global small platform. The car will also target other Asian markets and Europe, where the demand for compact cars is increasing.
Honda had earlier said it was firming up a major investment plan for its small car project in India. Currently, its Indian subsidiary, Honda Siel Cars India Ltd, sells the mid-size Honda City and the premium salon Honda Accord.
India remains a small car market with more than 60 per cent of the sales coming from this category. Maruti (Suzuki), Hyundai, Fiat and Tata Engineering have emerged big players by adopting the small car strategy.
Honda says its project will require investments over Rs 1,000 crore (Rs 10 billion), in addition to the existing plant in Surajpur, Greater Noida.
Honda executives in India earlier pointed out that the firm had to outsource local manufacturing of key parts to bring down costs. The project will, therefore, hinge on economies of scale.
Among other small car models that Honda is contemplating for India is the Jazz. However, initial research for the model was yet to start, a Honda official said.