Honda Siel Cars India Ltd (HSCI) is looking to launch a second small car with a tiny engine capacity that will be rolled out of its Rajasthan facility in the next three years. In the immediate term, auto circles are anxiously awaiting the launch of the Honda Jazz by July 2009, which is being positioned as the first small car from the Japanese automaker.

Although Honda Siel officials are unwilling to share further details about the second small car, sources said the possibility of a sub-1 litre engine driven car is not being ruled out. Interestingly, Honda Japan manufactures cars fitted with 660cc engines under its K-series which are currently sold only in Japan.

Officials from Honda Siel said Honda Japan’s R&D facility are currently working on the small-car model which will specifically be for Indian roads. They, however, did not comment on the size of engine, but said: “its going to be a small car with a small engine. The details have not been finalised yet.”

“Plans are to manufacture this small car which is currently at the design stage from our new plant in Rajasthan. This plant has already started the first phase of production where vehicle parts are being manufactured. In the second phase, the plant will start vehicle production during 2009,” said Honda Siel’s marketing vice-president Jnansewar Sen.