Honda Motor Co (7267.T) unveiled a new strategic small car specifically for Asian markets to meet demand from Asia's middle class, the Nikkei business daily reported.
The Brio will be mass-produced and sold in Thailand from March and in India by the end of next year, the paper said.
Featuring a 1.2-liter engine, it will be exported to neighboring countries in South Asia and Southeast Asia, the daily said.
Although both production sites will use a common chassis, Brios made in Thailand will emphasize fuel economy to get tax preferences under a government eco-car plan, the paper said.
By procuring more than 90 percent of materials and parts for the Thai location from Southeast Asia, the automaker will hold down the starting price to around 400,000 baht, or 1.1 million yen ($13,080), in Thailand, the paper said.
In India, a local procurement ratio of 80 percent will make possible a starting price of 500,000 rupees, or 900,000 yen ($10,700), the Nikkei reported.
The Indian-made cars, Honda's first to use locally procured steel sheet, have been designed to keep costs down, the daily reported.
