Honda sees bigger place for microcar

Small car specialist Honda doesn't intend leaving the microcar market to the likes of Smart and Toyota. Managing Director of Honda UK and Honda Europe board member, Ken Keir told the Carsales Network that his company had started study on the place of a sub-Jazz model in markets other than Japan.

"That size of car has a place in the market, without a doubt," said Keir. "We're [Honda Europe] looking at smaller cars as well.

"It's at a very embryonic stage [but] we've got them in Japan. We all know the economics of a smaller car, and I think it's an interesting concept," said Keir.

Honda currently sells the Life kei car in its domestic market, powered by a 660cc single overhead cam three-cylinder engine. Dimensionally, the Life shares a similarly-sized wheelbase to Jazz, but is shorter (by almost 500mm) and narrower (200mm).

While Honda is content with sales of its minicar in Japan, other markets such as Europe are being left to Smart with the ForTwo, which is enjoying sales success in densely-populated areas such as Milan and Paris, and was recently released for sale in the US. The Smart brand also garners parent company Mercedes-Benz green points.

Toyota expects to make inroads on the world's city congestion issues, with its sub-3m long, 3.5-seater iQ model. The maker has not confirmed powertrain options for the minicar but we'd suggest a straight-three petrol engine (perhaps a diesel version) and at least comparable buyer take-up to the 'premium' Smart ForTwo in European cities, and especially Japan.

However Keir suggests that for markets such as Australia, a sub-Jazz model isn't useful and a microcar is worthwhile only for "some" cities in Europe.

"What's important is the usability of space. At what point is a small car too small?"

Keir has a point too, it seems. Sales of the Jazz in Australia remain steady at around 1000 per month, whereas the Smart ForTwo can barely muster 30, even after the release of the overhauled '09 model.

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